Because leisure is a normal good, an increase in income
a. decreases the demand for leisure time and reduces the amount of time allocated to market work
b. decreases the demand for leisure time and increases the amount of time allocated to market work and/or nonmarket work
c. increases the demand for leisure time and reduces the amount of time allocated to market work and nonmarket work
d. increases the demand for leisure time and increases the amount of time allocated to market work and nonmarket work
e. has no impact on the demand for leisure time
C
You might also like to view...
________ is defined as the increase in domestic assets held by foreigners minus the increase in foreign assets held domestically
A) Net transfers B) The current account C) The financial account D) Net exports
With allocative efficiency:
A. the available supplies of factors of production are fixed in both quantity and quality. B. production of any particular mix of goods and services is that mix most wanted by society. C. production of any particular mix of goods and services occurs in the least costly way. D. the state of technology-or methods used to produce output-does not change.
In an indifference curve diagram, the quantities of good Y are measured along the vertical axis and the quantities of good X are measured along the horizontal axis. The marginal rate of substitution is defined as
A) how much good Y you must give up to get one more unit of good X. B) how much good Y you are willing to give up to get one more unit of good X. C) the relative price of good Y in terms of good X. D) how much you prefer to substitute good X for good Y.
If the inflation rate in an economy is 5 percent and the income earned by workers increases by 5 percent, then _____
a. nominal income declines and real income increases b. both nominal income and real income increase by 5 percent c. nominal income increases and real income declines d. both nominal income and real income decrease by 5 percent e. nominal income increases by 5 percent and real income is unchanged