Final answer:
A rise in wages can lead to different choices for a worker, such as more income, more leisure, or a combination of both, depending on their personal preferences and the strength of the income and substitution effects.
Step-by-step explanation:
When considering how a worker's employment rent rises with the value of her outside opportunities, it is important to recognize that a rise in wages can lead to different choices for a worker. The worker can choose to receive the benefits of the wage increase in the form of more income, more leisure, or a combination of both. The final decision will depend on the individual's personal preferences and the strength of the income and substitution effects. Therefore, it is not accurate to assume that a wage increase will result in a worker working substantially more hours.