When Leisure Is a Normal Good, the Income Effect from a Decrease

question 504

Multiple Choice

When leisure is a normal good, the income effect from a decrease in wages is evident in

• A)a desire to consume more leisure.
• B)a desire to consume less leisure.
• C)an upward-sloping labor-supply curve.
• D)a shift in labor demand.

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Definitions:

Core Peripheral Country

A concept in world-systems theory describing countries that dominate in terms of advanced technology, financial resources, and economic influence, as opposed to peripheral countries that are dependent and exploited.

Geopolitically Important

Having significant influence or strategic value in global politics and international relations.

Financial Assistance

Support given in the form of money to individuals or organizations in need, often provided by governments, institutions, or private entities.

Dependency Theory

A social science theory proposing that economic development in a global context is structured by the exploitation and dependency relationships between wealthy, developed countries and poorer, underdeveloped nations.