When the wage increases,the substitution effect in the household's choices leads to
A) a decrease in consumption and leisure.
B) a decrease in consumption and an increase in leisure.
C) an increase in consumption and a decrease in leisure.
D) an increase in consumption and leisure.
Correct Answer:
Verified
Q57: At the optimal consumption bundle,the marginal rate
Q58: In a one-period economy,real consumption
A) is always
Q59: A defense for the assumption that consumers
Q60: With consumption on the vertical axis and
Q61: The substitution effect measures
A) the responses of
Q63: Theoretically,an increase in the real wage
A) increases
Q64: As the quantity of capital increases,the marginal
Q65: A production function describes the
A) technological possibilities
Q66: As the quantity of labor increases,the marginal
Q67: In the production function,Y = zF(K,N?),total factor
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents