Multiple Choice
When consumption and leisure are both normal goods, an increase in real dividend income minus taxation, the rational consumer
A) reduces consumption and increases leisure.
B) increases consumption and increases work.
C) increases consumption and increases leisure.
D) increases consumption and reduces leisure.
E) reduces consumption and reduces leisure.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: The consumer's work-leisure choice problem focuses on
Q8: Perfect complements will have<br>A)curved indifference curve, bowed
Q9: A utility function<br>A)measures relative happiness and income
Q10: In practice<br>A)lump sum taxes affect the effective
Q11: A static decision is one that<br>A)is made
Q13: The property of diminishing marginal rate of
Q14: An increase in real dividend income minus
Q15: The marginal rate of substitution<br>A)can only be
Q16: The preferences of the representative consumer over
Q17: The slope of the indifference curve is