Assume Leisure Is an Inferior Good Instead of a Normal

question 220

Multiple Choice

Assume leisure is an inferior good instead of a normal good. The income effect of a wage decrease will lead to a ________ demand for leisure and a ________ labor supply.

• A) higher; higher
• B) higher; lower
• C) lower; higher
• D) lower; lower

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Definitions:

Incongruent Self-Concept

A state where an individual's perceived self doesn't align with their ideal self or reality, causing internal conflict and distress.

Conditional Affection

Offering love, support, or affection to someone based on certain conditions or criteria being met.

Incongruent

Not in harmony or keeping with the surroundings or other aspects of something; lacking agreement or consistency.

Self-Concept

An individual’s perception of self, incorporating attitudes, beliefs, and feelings about oneself, which can influence behavior and social interactions.