Refer to Figure 14.1. The income effect of the wage increase on the amount of hours of leisure is:
A) L0 to L2.
B) L0 to L1.
C) L1 to L2.
D) L2 to L1.
E) none of the above
A
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In a society where government mandates that everyone shares the product of one's hard work with everyone else, people will tend to work harder than they would if they could keep the full product of their work
Indicate whether the statement is true or false
Which of the following demonstrates that policymakers cannot know the outcome of their decisions without knowing the public's expectations of them?
A) traditional Keynesian theory B) Post Keynesian theory C) real business cycle theory D) new classical theory
Suppose a market has the demand function Qd=20-0.5P. At which of the following prices will total revenue be maximized?
a. $10 b. $20 c. $30 d. $40
Labor income includes:
A. wages, salaries, and earnings of the self-employed. B. interest, dividends, and rent. C. profits, royalties, and rent. D. payments to owners of factories, machines, and buildings.