Figure 14.1 A Consumer's Original Utility Maximizing Combination of Income and Leisure

question 11

Multiple Choice

Figure 14.1
A consumer's original utility maximizing combination of income and leisure is shown in the diagram above as point A. After a wage increase, the consumer's utility maximizing combination changes to point C.
-Refer to Figure 14.1. The substitution effect of the wage increase on the amount of hours of leisure is:

• A) L₁ to L₀
• B) L₁ to L₂.
• C) L₀ to L₂.
• D) L₀ to L₁.
• E) none of the above

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Definitions:

Gender-typing

The process by which a child becomes aware of their gender and thus behaves accordingly by adopting values and attributes of members of the sex that they identify as their own.

Divorced Mother

A woman who has legally terminated her marriage and may be facing the challenges of raising children post-divorce.

Plays With Dolls

Refers to the activity often associated with children where they engage in imaginative play using dolls as characters.

Includes Wife

Pertains to or involves the spouse in situations, decisions, or contexts.