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Author Question: When consumption and leisure are both normal goods, after an increase in real dividend income minus ... (Read 101 times)

mcmcdaniel

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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.



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Joy Chen

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Answer to Question 1

A

Answer to Question 2

D




mcmcdaniel

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it


blakcmamba

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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