True, False or Uncertain. (With brief explanation) 3. We say a worker \"moonligh

Question

True, False or Uncertain. (With brief explanation)

3. We say a worker "moonlights" when he takes a second job because he is limited in the hours he can work in the primary job. If leisure is a normal good, an increase in the wage rate offered on his primary job will lead to an decrease in the number of hours he moonlights. [Assume for simplicity the moonlighting job has a lower hourly wage than the primary job. Also assume that the worker works at least some moonlighting hours at his desired optimum.

Explanation / Answer

True. When the wage rate offered on the primary job increases, he would increase the consumption of leisure (since it is a normal good). This means he works less hours in other jobs, that is, less hours moonlighting.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.