Because leisure is a normal good, an increase in income
a. decreases the demand for leisure time and reduces the amount of time allocated to market work
b. decreases the demand for leisure time and increases the amount of time allocated to market work and/or nonmarket work
c. increases the demand for leisure time and reduces the amount of time allocated to market work and nonmarket work
d. increases the demand for leisure time and increases the amount of time allocated to market work and nonmarket work
e. has no impact on the demand for leisure time
Question 2
The most effective government policy for reducing poverty is to
a. reduce discrimination in the job market based on gender and race
b. abandon all government programs and rely on private charity
c. reduce programs that promote education and training of the poor
d. dramatically increase Medicare payments to the elderly
e. promote economic growth and job creation
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