When Leisure Is a Normal Good, the Income Effect from a Decrease

question 504

Multiple Choice

When leisure is a normal good, the income effect from a decrease in wages is evident in

• A)a desire to consume more leisure.
• B)a desire to consume less leisure.
• C)an upward-sloping labor-supply curve.
• D)a shift in labor demand.

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Definitions:

Diamonds

A form of carbon, diamonds are renowned for their physical properties, particularly their hardness and optical dispersion, making them valuable for jewelry and industrial applications.

Cogent

The property of an inductive argument that is strong and whose premises are true.

Valid

Correct or acceptable according to the law or logic; having a sound basis in reasoning or fact.

Premises

Premises are statements or propositions that provide the basis or grounds for a conclusion in logical reasoning.