Author Question: A consumer's budget line will shift to the right in a parallel manner if: a. the price of the good ... (Read 66 times)

charchew · **on:** Jun 30, 2018

A consumer's budget line will shift to the right in a parallel manner if:
a. the price of the good on the X-axis decreases.
b. the price of the good on the Y-axis increases.
c. the consumer's income increases.
d. the consumer's income decreases.

Question 2

Which of the following is a reason that some economists do not agree with the concept of a labor-leisure tradeoff?
a. Wages are paid in dollars and leisure is measured in time, hence there is no way to compare the two.
b. On a day-to-day basis, most jobs do not have the flexibility to allow people to weigh the benefits and costs to determine how much they should work that day.
c. In the long-run, the supply of labor hours is perfectly inelastic.
d. An increase in the wage rate always leads to an increase in the supply of labor hours, therefore the workers do not think of choosing leisure over labor.
e. Some people do not work at all, so there is no labor-leisure tradeoff for those individuals.