Leisure can be:
A)either a normal good or an inferior good.
B)only a normal good.
C)considered to be an inferior good when a parallel outward shift of the budget line leads to an increase in leisure .
D)considered to be a normal good when a parallel outward shift of the budget line leads to a decrease in leisure.

Question

Quizplus · Accepted Answer

Leisure can be either a normal good or an inferior good depending on how individuals respond to changes in their income or wealth. If people choose more leisure (less work) as their income increases, leisure is considered a normal good. If they choose less leisure (more work) as their income increases, then leisure is considered an inferior good. Choices C and D describe scenarios that could happen depending on whether leisure is a normal or inferior good, but they do not limit leisure to being only one type of good.

Leisure Can Be