The income effect of an increase in the wage rate on the quantity of leisure demanded
A. makes leisure less expensive which causes people to work less.
B. gives people more purchasing power and causes people to work less.
C. gives people less purchasing power and so they will work more.
D. makes leisure more expensive which leads people to work more.
Answer: B
You might also like to view...
Joshua consumes only apples and bread and is in consumer equilibrium. Joshua reads that eating bread is healthy, so his total utility from each loaf of bread increases. At his new consumer equilibrium Joshua would consume
A) more apples and less bread. B) fewer apples and more bread. C) some combination of apples and bread corresponding to a lower ratio of the marginal utility of bread to the marginal utility of apples. D) the same quantity of apples and the same quantity of bread.
An unanticipated increase in inflation will:
a. redistribute income from employers to workers. b. redistribute income from lenders to borrowers. c. redistribute income from borrowers to lenders. d. do none of the above.
Households receive bonds when they loan money directly to a firm.
Answer the following statement true (T) or false (F)
The ambitious plan to wean American agriculture from subsidies, as embodied in the Freedom to Farm Act of 1996:
A. Became fully realized by 2000 B. Unraveled in 1998 and 1999 when farm prices fell C. Was not approved by the President D. Was extended in 2002