When Consumption and Leisure Are Both Normal Goods, an Increase

question 18

Multiple Choice

When consumption and leisure are both normal goods, an increase in real dividend income minus taxation, the rational consumer

• A)increases consumption and savings.
• B)increases consumption and reduces labour supply.
• C)reduces consumption and reduces labour supply.
• D)reduces consumption and increases labour supply.
• E)increases consumption and increases labour supply.

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Definitions:

Labor-Management Relations Act

A statute that regulates the relations between employers and organized labor, including collective bargaining, strikes, and the rights of union members.

Collective Bargaining

A process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions.

National Labor Relations Board

An independent U.S. federal agency established to enforce US labor law in relation to collective bargaining and unfair labor practices.

Summary Plan Description

A document that provides detailed information about an employee benefit plan including its benefits, rights, and obligations under the plan.