In the work-leisure model, suppose consumption and leisure are both normal goods. The income effect of a wage increase results in the worker choosing to
a. work less than before.
b. work more than before.
c. possibly work more or less than before.
d. work more with a higher level of consumption.
a
You might also like to view...
The market supply curve for labor is
A) perfectly inelastic if leisure is an inferior good. B) determined by adding up the quantity of labor supplied by each worker at each wage, holding constant all other variables that affect the willingness of workers to supply labor. C) determined by adding up the wages each worker is willing to work for at a given quantity supplied, holding constant all other variables that affect the willingness of workers to supply labor. D) derived from the market supply curve for the output produced with labor.
Which of the following persons would be considered employed?
A) Jennifer, a teacher who is on a two month maternity leave but will return to work after. B) All of the above persons are considered employed. C) Sam, a 12 year old who helps his mom stock shelves at her gift shop. D) Ron, a recently enrolled full-time college student in hopes of finding a well-paying job.
Suppose total planned expenditures equal $100 billion when the value of the price level is 100. If the price level drops to 90, total planned real expenditures will equal
A. less than $100 billion. B. more than $100 billion. C. $100 billion. D. None of these: Cannot be determined without additional information.
The figure below shows an individual's demand for items from a warehouse club. All of the people who shop at the warehouse club have the same demand. If the managers use two-part pricing, the membership fee (the access fee) is ________ and the price per item (the user fee) is ________ .
A) $80; $6 per unit
B) $60; $6 per unit
C) $40; $10 per unit
D) $20; $10 per unit