One deficiency of the labor-leisure indifference curve analysis is that because indifference curves are always tangent to the worker's budget line, the model cannot explain why some people choose not to work.
True or false?
One deficiency of the labor-leisure indifference curve analysis is that because indifference curves are always tangent to the worker's budget line, the model cannot explain why some people choose not to work.
True or false?
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Microeconomics Four-part multiple choice question with an explanation. Give a short explanation for each part regarding how your answer is computed or why your answer is correct.
Part A. |
Para mi volunteers at a homeless shelter. It takes a lot of her time, and thus she sometimes takes off time from her job to do the volunteer work. Parami's behavior can be explained by: |
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Ā |
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Part B. |
Indifference curves cannot be concave to the origin because: |
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Ā |
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Part C. |
Marginal utility analysis and indifference curve analysis are both used to: |
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Ā |
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Part D. |
Indifference curves: |
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Ā |
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