CLEP Economics Exam Prep

Category - Economics

Recently, the hourly wage that parents are willing to pay babysitters increased dramatically. Higher pay will most likely cause which of the following changes in how babysitters divide their out-of-school time between babysitting and other activities?Time Spent Time SpentBabysitting on Other Activities
  1. No change Decrease
  2. Increase Decrease
  3. Decrease No change
  4. Increase Increase
Explanation
Answer: B - Increase Decrease
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