If leisure is a normal good, an increase in the wage ? – McqOptions

MCQOPTIONS

1.	If leisure is a normal good, an increase in the wage ?
A.	will always increase the quantity of labor supplied
B.	will increase the amount of labor supplied if the substitution effect outweighs the income effect
C.	will increase the amount of labor supplied if the income effect outweighs the substitution effect
D.	will always decrease the amount of labor supplied
Answer» C. will increase the amount of labor supplied if the income effect outweighs the substitution effect

Discussion

No Comment Found

Related MCQs

Which of the following statements is not true with regard to the standard properties of indifference curves ?
Which of the following is true about the consumer’s optimum consumption bundle? At the optimum ?
Which of the following is not true regarding the outcome of a consumer’s optimization process ?
uppose a consumer must choose between the consumption of sandwiches and pizza. If we measure the quantity of pizza on the horizontal axis and the quantity of sandwiches on the vertical axis and if the price of a pizza is Rs10 and the price of a sandwich is Rs5, then the slope of the budget constraint is ?
The slope at any point on an indifference curve is known as ?
The limit on the consumption bundles that a consumer can afford is known as ?
The consumer’s optimal purchase of any two goods is the point where ?
The change in consumption that results when a price change moves the consumer along a given indifference curve is known as the ?
Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 A pair of socks is ?
Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The substitution effect is represented by the movement from point ?