You currently work for 40 hours a week at wage rate of £12 an hour. Your free hours are defined as the number of hours not in work, which in this case is 24 hours \times 7 days - 40 hours = 128 hours per week. Suppose that you are happy to keep your total weekly income constant. Then: Group of answer choices If your pay is cut to £9, in order to keep your income constant, you'll only get 100 hours of free time. To have 16 hours of more free time, your wage rate needs to increase by £8. Doubling the wage rate would decrease your working hours to 30 hours per week. If your wage rate increases to £16 an hour, then your free time will increase to 130 hours.
You currently work for 40 hours a week at wage rate of £12 an hour. Your free hours are defined as the number of hours not in work, which in this case is 24 hours \times 7 days - 40 hours = 128 hours per week. Suppose that you are happy to keep your total weekly income constant. Then: Group of answer choices If your pay is cut to £9, in order to keep your income constant, you'll only get 100 hours of free time. To have 16 hours of more free time, your wage rate needs to increase by £8. Doubling the wage rate would decrease your working hours to 30 hours per week. If your wage rate increases to £16 an hour, then your free time will increase to 130 hours.
Chapter16: Labor Markets
Section: Chapter Questions
Problem 16.1P
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Transcribed Image Text:You currently work for 40 hours a week at wage rate of £12 an hour. Your free hours are defined as the number of hours not in work,
which in this case is 24 hours \times 7 days - 40 hours = 128 hours per week. Suppose that you are happy to keep your total weekly
income constant. Then:
Group of answer choices
If your pay is cut to £9, in order to keep your income constant, you'll only get 100 hours of free time.
To have 16 hours of more free time, your wage rate needs to increase by £8.
Doubling the wage rate would decrease your working hours to 30 hours per week.
If your wage rate increases to £16 an hour, then your free time will increase to 130 hours.
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