This topic contains a solution. Click here to go to the answer

Author Question: When consumption and leisure are both normal goods, after an increase in real dividend income minus ... (Read 98 times)

mcmcdaniel

  • Hero Member
  • *****
  • Posts: 550
When consumption and leisure are both normal goods, after an increase in real dividend income minus taxation, the rational consumer
 
  A) increases consumption and increases leisure.
  B) increases consumption and reduces leisure.
  C) reduces consumption and increases leisure.
  D) reduces consumption and reduces leisure.

Question 2

The condition, MRS1,'C' = w ', describes the representative consumer's
 
  A) investment decision.
  B) consumption - savings decision.
  C) current period work - leisure decision.
  D) future period work - leisure decision.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Joy Chen

  • Sr. Member
  • ****
  • Posts: 354
Answer to Question 1

A

Answer to Question 2

D




mcmcdaniel

  • Member
  • Posts: 550
Reply 2 on: Jun 30, 2018
:D TYSM


abro1885

  • Member
  • Posts: 337
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

For a complete list of videos, visit our video library