Multiple Choice
Related to the Economics in Practice on page 131: Uber drivers can choose to drive as many or as few hours as they desire, and most drivers have another job and drive for Uber as a way to supplement their income. Assuming leisure is a normal good, if Uber increased the wages it paid its drivers then the income effect would result in drivers working ________ and buying ________ leisure.
A) more; less
B) more; more
C) less; less
D) less; more
Correct Answer:
Verified
Correct Answer:
Verified
Q118: For normal goods, the income and substitution
Q119: Refer to the information provided in Figure
Q120: The ratio of the marginal utility of
Q121: Refer to the information provided in Figure
Q122: If the substitution effect of a wage
Q124: Refer to the information provided in Figure
Q125: If the price of a normal good
Q126: Indifference curves have positive slopes.
Q127: Refer to the information provided in Figure
Q128: A consumer satisfies the condition _ when