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  3. 11 let l be leisure and y be income then...

Question: 11 let l be leisure and y be income then...

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11. Let L be leisure and Y be income then the optimal work-leisure position is achieved where the MRS L,Y is equal to the wage rate the difference between the MRS L,Y and the wage is greatest the wage rate is greatest the MRS L,Y is greatest 12. A household will tend to substitute goods for time in the production of commodities if: a household members market wage increases a household members market wage decreases the substitution effect of a wage decrease exceeds the income effect the households total income decreases 13. Which of the following best exemplifies the Becker income effect? An increase in the market wage leads a household to substitute time for goods in the production of commodities consume fewer time-intensive commodities and more goods-intensive commodities consume more commodities have fewer children 14. The labor force consists of all persons age 16 years and over who are: employed employed or are actively seeking employment employed, actively seeking employment, or have given up looking for employment not institutionalized 15. Given the following data, what is the labor force participation rate? Population Non-institutionalized population, age 16 and over Persons employed or seeking employment Unemployed persons 300 million 250 million 200 million 10 million 10% 75% 80% 84%

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