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The labor supply curve slopes upward if

a. leisure is a normal good.

b. consumption is a normal good.

c. the income effect on leisure is greater than the substitutuion effect.

d. the substitution effect on leisure is greater than the income.

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Anne Gillian Duero
Anne Gillian DueroLv10
24 Oct 2020

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Related questions

9. An increase in wages will induce a utility maximizing individual to work fewer hours when a) leisure is inferior and the substitution effect dominates the income effect b) leisure is inferior and the income effect dominates the substitution effect c) leisure is normal and the substitution effect dominates the income effect d) leisure is normal and the income effect dominates the substitution effect

22) Increases in non-labour income A) increase labour supply because leisure is considered to be a normal good. B) decrease labour supply because leisure is considered to be a normal good. C) increase labour supply because leisure is considered to be an inferior good. D) decrease labour supply because leisure is considered to be an inferior good. E) generally have no effect on labour supply.

1. A factor demand curve will shift because of

A. a change in the price of a complementary factor

B. the slope of the MP curve

C. the elasticity of demand for the final product

D. the proportion of the factor's cost relative to the total cost

2. Which of the following statements is true

A. The market demand for labor will change as a result of a change in the use of a complementary factor or a substitute factor

B. The market demand curve for labor is found by adding the supply curves for the labor of individual firms

C. A firm's demand for labor is the upward-sloping portion of the MRP curve for labor.

D. The market demand curve for labor is vertical at the profit-maximizing wage.

3. Which of the following statements is true

A. Leisure is a normal good.

B. Leisure is an inferior good.

C. All other things unchanged, an increase in income will decrease the demand for leisure.

D. The demand for leisure is perfectly inelastic.

4. A lower wage

A. has an income effect which is always negative for the quantity of labor supplied.

B. has an income effect but not a substitution effect on the quantity of labor supplied.

C. means a higher income for any given level of labor supplied.

D. has an income effect which is always positive for the quantity of labor supplied.

5. The _______ effect of a _______ wage causes individuals to substitute _______

A. substitution, higher; labor for leisure

B. income; higher; labor for leisure

C. substitution; lower; labor for leisure

D. complementary; constant; leisure for labor

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