Chapter 1 Five Foundations of Economics Page 9 12 What are f

Chapter 1: Five Foundations of Economics Page 9 1.2. What are five foundations of economics? Eleanor works at a department store and is paid by the hour. When not at work, she likes to spend time reading at home. During the holiday season, Eleanor can work as many hours as she wants due to the increased customer traffic. The store recently increased her hourly wage. Complete the passage describing Eleanor\'s situation Drag word(s) below to fill in the blank(s) in the passage. hours. The wage increase causes the The increased hourly wage acts as to work opportunity cost of reading at home to an indirect incentivea trade-offa direct incentive\" more increasedecrease fewer a negative incentive

Solution

Answer:

The increased hourly rate acts as a direct incentive to work more hours.(because wages is financial nature which is paid direct proportion to work)

The wage increase causes the opportunity cost of reading at home to a trade-off (sacrificing something equally important to other option)

Answer 1: a direct incentive

Answer 2: more

Answer 3: a trade-off