Consider the Situation of a Worker Who Is 'At the Corner

question 1

Multiple Choice

Consider the situation of a worker who is 'at the corner equilibrium' i.e., he or she is supplying zero hours of work and consuming 16 hours of leisure. In context of the income-leisure framework, which of the following statements is false?

• A) The indifference curve is flatter than the budget line.
• B) The indifference curve is steeper than the budget line.
• C) Marginally, the worker values an hour of leisure more than she values an hour's worth of income.
• D) The marginal rate of substitution is greater than the wage rate in absolute value terms.
• E) The rate at which the worker is willing to exchange income for leisure is not equal to the market rate for the exchange of income for leisure.

---

Definitions:

Economic Class

An immigration category that includes federal and Quebec-selected skilled workers, federal and Quebec-selected business immigrants, provincial and territorial nominees, the Canadian Experience Class (CEC), and caregivers, as well as spouses, partners, and dependants who accompany the principal applicants in any of these economic categories (Government of Canada, 2016a).

Refugee Class

A classification within immigration policy referring to individuals granted asylum or refugee status due to persecution or fear of persecution in their home countries.

Singh Decision

Landmark decision in refugee determination made by the Supreme Court of Canada in 1985; the decision protects the right of every refugee claimant to an oral hearing.

Supreme Court of Canada

The highest court in Canada, which serves as the final court of appeal and arbitrates over disputes concerning constitutional matters, federal and provincial legislation.