Examlex
Use the following to answer questions:
Figure: Rita's Time Allocation Budget Line
-(Figure: Rita's Time Allocation Budget Line) Look at the figure Rita's Time Allocation Budget Line. It is based on 80 hours available for labor and leisure. Rita chooses 40 hours of leisure and income of $280. When her hourly wage doubles, Rita chooses 30 hours of leisure and income of $700. The substitution effect is making her work _____, the income effect is making her work _____, and the substitution effect is _____ than the income effect.
Income
The money received by an individual or group for work, from investments, or from other sources, often used as an indicator of economic standing.
Marginal Tax Rate
The percentage of tax applied to your next dollar of income, indicating the tax bracket rate for each additional dollar earned.
Average Tax Rate
The proportion of total income that is paid as taxes, calculated by dividing the total taxes paid by the total income.
Alcohol Tax
A special tax imposed on alcoholic beverages to generate revenue and/or discourage excessive consumption owing to health or social reasons.
Q9: The invention of labor-saving appliances has decreased
Q32: (Figure: Rita's Time Allocation Budget Line) Look
Q34: If leisure is a normal good for
Q38: Which of the following countries has a
Q43: The marginal benefit of pollution emissions _
Q44: In large shopping malls, the retail clothing
Q60: (Figure: Firms in Monopolistic Competition) Look at
Q80: In a perfectly competitive labor market, the
Q166: Which of the following is an example
Q200: When a firm is a perfect competitor