Maude's labor-supply curve slopes upward if, for Maude,

a. consumption is a normal good.
b. leisure is a normal good.
c. the substitution effect on leisure exceeds the income effect.
d. the income effect on leisure exceeds the substitution effect.


Answer: c. the substitution effect on leisure exceeds the income effect.

Economics

You might also like to view...

Auctions can be differentiated on the basis of ________

A) the number of buyers B) the number of sellers C) the way in which people place their bids D) the degree of competition among buyers

Economics

If something is to serve as money it must be a store of value. This means that it must

A) be divisible. B) be the standard by which all goods are compared in setting prices. C) hold its purchasing power over time. D) be liquid.

Economics

In the market for production, households offer resources like _____ in return for _____

a. labor; income b. land; profit c. land; human capital d. labor; revenue

Economics

The willingness of consumers to buy a product at different prices is shown on a

A) demand curve. B) supply curve. C) production possibilities frontier. D) marginal cost curve.

Economics