If Leisure Is a Normal Good, Then an Increase in Income

question 145

Multiple Choice

If leisure is a normal good, then an increase in income will

• A)decrease the time allocated to work but increase the time allocated to leisure.
• B)increase the time allocated to work but decrease the time allocated to leisure.
• C)not change the time allocated to work or leisure.
• D)increase the time allocated to both work and leisure.
• E)decrease the time allocated to both work and leisure.

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Definitions:

Short-Term Notes Receivables

Short-duration financial assets representing amounts owed to a company that must be paid within a year.

Allowance Account

An accounting practice used to create a buffer for potential future losses on receivables, also known as a provision for doubtful debts.

Gross Realizable Value

The estimated selling price of goods minus any costs associated with the completion and sale of those goods.

Promissory Note

A financial instrument where the writer promises to pay a specific sum to a specified person or bearer at a determined date.