If His Wage Rate Increases, Then a Utility Maximizing Consumer

question 5

Multiple Choice

If his wage rate increases, then a utility maximizing consumer will necessarily

• A)increase (or leave constant)his labor supply.
• B)increase (or leave constant)his labor supply if leisure is a normal good but otherwise might reduce his labor supply.
• C)increase (or leave constant)his labor supply if leisure is an inferior good but otherwise might reduce his labor supply.
• D)decrease (or leave constant)his labor supply.
• E)none of the above.

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Definitions:

Granules

Small particles or grains, often referring to microscopic structures within cells that contain enzymes and other substances.

Open Circulatory System

A type of circulatory system where blood is not always contained within blood vessels but flows freely through cavities in the body, facilitating exchange of nutrients and waste with cells.

Blood Vessels

The tubes in the body through which blood flows, including arteries, veins, and capillaries, responsible for transporting oxygen, nutrients, and waste products.

Hemoglobin

This substance within red blood cells facilitates the movement of oxygen from the lungs to various body tissues and the return transport of carbon dioxide to the lungs.