When Consumption and Leisure Are Both Normal Goods, an Increase

question 26

Multiple Choice

When consumption and leisure are both normal goods, an increase in real dividend income minus taxation, the rational consumer

• A) increases consumption and increases leisure.
• B) increases consumption and reduces leisure.
• C) reduces consumption and increases leisure.
• D) reduces consumption and reduces leisure.
• E) increases consumption and increases work.

---

Definitions:

Comparative Performance

is the evaluation of the effectiveness or success of a product or service in relation to its competitors.

Health Check

An evaluation or assessment of the current state of health, whether for an individual, system, or organization, to identify areas needing improvement.

Cognitive

Related to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Behavioural

Relating to the actions or reactions of an individual or group in response to external or internal stimuli.