Final answer:
Regular earnings are calculated by multiplying the number of regular hours worked by the regular hourly rate. Overtime pay is calculated separately and may influence the total income, particularly for part-time or younger workers who adapt their hours more readily.
Step-by-step explanation:
The calculation of an employee's regular earnings is generally defined as the number of regular hours worked multiplied by the employee's regular rate of pay. Therefore, the correct answer to the question is (A) regular hours times regular rate. This formula does not account for overtime pay, which is typically calculated as the number of overtime hours worked times the overtime rate, which is often higher than the regular rate.
It's important to note that while some workers' supply of labor might be inelastic, meaning they work fixed hours regardless of changes in wage, there are groups such as part-time or younger workers who may alter their hours in response to changes in their earnings. Moreover, understanding variables like benefits, taxes, and productivity can also be essential when considering compensation and work hours.