Assume Leisure Is a Normal Good

question 87

Multiple Choice

Assume leisure is a normal good. The substitution effect of a wage increase implies a ________ demand for leisure and a ________ labor supply.

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

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Definitions:

Economics Textbook

A publication that systematically presents economic theories, principles, and concepts to learners at various levels of education.

Opportunity Cost

Abandoning the possibility of gains from alternative options by selecting one choice.

Vending Machine

An automated machine that provides items such as snacks, beverages, and other products to consumers after money, a credit card, or a specially designed card is inserted into the machine.

Bag of Chips

A packaged snack made from thinly sliced potatoes or other vegetables, fried or baked, commonly seasoned and served in a sealed bag.