Which of the Following Is True of a Change in Nonlabor

question 326

Multiple Choice

Which of the following is true of a change in nonlabor income?

• A) There is no substitution effect because a change in nonlabor income does not change the trade-off between work and leisure.
• B) There is no income effect because a change in nonlabor income does not change the trade-off between work and leisure.
• C) There is no substitution effect because a change in nonlabor income does not change a household's permanent income.
• D) There is no income effect because a change in nonlabor income does not change a household's permanent income.

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Definitions:

Substance Addiction

A chronic condition characterized by the compulsive use of substances despite harmful consequences, leading to mental and physical dependence.

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to addiction or dependency.

Recreational Use

The use of substances such as drugs, alcohol, or marijuana for pleasure or leisure purposes rather than for medical reasons.

Lorazepam

A medication used to treat anxiety disorders, oftentimes acting as a sedative and muscle relaxant, part of a class of substances known as benzodiazepines.