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The Slope of the Indifference Curve at the Lower Left-Hand

Question 23

Multiple Choice

The slope of the indifference curve at the lower left-hand corner of the income/leisure diagram, where zero hours are supplied to the labour market, is equal to:


A) the difference between the market wage and the reservation wage
B) the reservation wage.
C) the slope of the budget constraint.
D) the prevailing market wage.
E) the level of non-market income.

Correct Answer:

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