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QUESTION 1) When leisure is a normal good, the income effect from an increase in wages is manifest in...A. a desire to consume more leisure.B. a desire to consume less leisure.C. the backward-bending portion of labor supply.D. a shift in labor demand.QUESTION 2) The liberalism doctrine suggests that the focus of social policy would be to...A. elevate the well-being of all workers.B. elevate the well-being of those at the bottom of the income distribution.C. ensure an egalitarian distribution of income.D. expropriate the factors of production from the capitalist class.QUESTION 2) Employers who operate in competitive product markets and choose to practice discrimination in hiring workers..A. will survive if they increase production and garner a larger market share.B. will eventually earn zero economic profits.C. are likely to eventually go out of business.D. will survive as long as they’re willing to have a smaller market share.THANKS!
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