Recent data has shown that income and volunteer time are positively related. Assuming that volunteer time is included in leisure time, what could explain this observation?
A) Higher income individuals view leisure as a normal good such that the income effect dominates the substitution effect.
B) Higher income individuals view leisure as a normal good such that the substitution effect dominates the income effect.
C) Higher income individuals view leisure as an inferior good such that the income and substitution effects both increase leisure time.
D) Both A and C.
A
Economics
You might also like to view...
What is the "big tradeoff"?
What will be an ideal response?
Economics
Specialization of labour led to greater efficiency in the allocation of resources because of
A) the use of barter. B) an increase in total work effort. C) greater reliance on self-sufficiency. D) the opportunity cost of labour increased. E) the principle of comparative advantage.
Economics