Multiple Choice
George Goodhands is a life insurance agent.He can work 40 hours a week for a large national insurance company and receive a fixed salary of S dollars per week, or he can work independently, for as many or as few hours per week as he likes and earn w dollars per hour.(He cannot take both jobs.) Which of the following responses to an increase in the salary paid by the insurance company would be inconsistent with the weak axiom of revealed preference?
A) Leaving independent work for the 40 hour salaried job
B) Doing exactly what he was doing before
C) More than one of these options would be inconsistent
D) Continuing to work independently but working more hours
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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