If leisure is a normal good,then a decrease in income _____ the time allocated to _____.

Question

Quizplus · Accepted Answer

If leisure is a normal good, then as income decreases, people will allocate less time and money to leisure activities, which means they will have less free time for leisure. Therefore, the decrease in income will decrease the time allocated to leisure, as stated in option B, and not increase it (option D) or affect nonmarket work in addition to market work (option C). Option A is incorrect because it states that the decrease in income would lead to a decrease in market work, which is not necessarily true as people might have to work more to make up for the lost income. Option E is incorrect because a decrease in income would not increase the time people have for market work, nonmarket work, and leisure.

If Leisure Is a Normal Good,then a Decrease in Income