Because Leisure Is a Normal Good, an Increase in the Wage

question 101

Multiple Choice

Because leisure is a normal good, an increase in the wage rate will result in

• A)an increase in the quantity of labor supplied because of both the substitution effect and the income effect.
• B)a decrease in the quantity of labor supplied because of the substitution effect and an increase in the quantity of labor supplied because of the income effect.
• C)an increase in the quantity of labor supplied because of the substitution effect and a decrease in the quantity of labor supplied because of the income effect.
• D)an increase in the quantity of labor supplied because of the substitution effect. At low wages the income effect causes an increase in the quantity of labor supplied, but at high wages the income effect causes a decrease in the quantity of labor supplied as the wage rises.

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Definitions:

Vasa Recta

A series of straight capillaries in the kidney that serve as an extension of the loop of Henle, playing a critical role in the concentration of urine.

Nephron Loop

A U-shaped tube in the nephron of the kidney that plays a crucial role in concentrating urine and conserving water.

Proximal Tubule

A major part of the nephron in the kidney, involved in the reabsorption of water, ions, and nutrients from the filtrate and their return to the bloodstream.

Urinalysis Test Strip

A diagnostic tool used to detect and measure various compounds in urine, such as glucose or proteins.