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.
A
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Which of the following is false?
a. The total product schedule shows the total amount of output generated as the level of the fixed input increases. b. The marginal product of any single input is the change in total product resulting from a small change in the amount of that input used. c. As the amount of a variable input is increased, the amount of other fixed inputs being held constant, a point ultimately will be reached beyond which marginal product will decline. This is called diminishing marginal product. d. A firm never knowingly allows itself to reach the point where the marginal product becomes negative.
A country can gain by importing a good that it can make itself if
a. this enables the country to make another good in which it is extremely efficient. b. it has an absolute disadvantage in the good. c. this permits the country to establish comparative advantage in the good. d. All of the above are correct.