QUESTION 4 The opportunity cost of going on holiday to an unemployed person is O zero, as the person is not foregoing any wages to take the holiday O equal to the cost of the holiday plus the value of the alternative use of the person's time O equal to the cost of the holiday zero, as the person does not have a next best alternative QUESTION 5 Suppose that quantities of two goods, X and Y, are plotted on a chart, with good X on the horizontal axis and good Y is on the vertical axis. If M=100, Px=20 and Py=10, the X and Y intercepts of the budget line are O 20 and 10. O 5 and 10. O 10 and 20. O impossible to calculate from the figures provided. QUESTION 6 Because leisure is a normal good, an increase in the wage rate will result in O an increase in the quantity of labour supplied because of both the substitution effect and the income effect. O a decrease in the quantity of labour supplied because of the substitution effect and an increase in the quantity of labour supplied because of the income effect. O an increase in the quantity of labour supplied because of the substitution effect and a decrease in the quantity of labour supplied because of the income effect. O an increase in the quantity of labour supplied because of the substitution effect. At low wages the income effect causes an increase in the quantity of labour supplied, but at high wages the income effect causes a decrease in the quantity of labour supplied as the wage rises.
QUESTION 4 The opportunity cost of going on holiday to an unemployed person is O zero, as the person is not foregoing any wages to take the holiday O equal to the cost of the holiday plus the value of the alternative use of the person's time O equal to the cost of the holiday zero, as the person does not have a next best alternative QUESTION 5 Suppose that quantities of two goods, X and Y, are plotted on a chart, with good X on the horizontal axis and good Y is on the vertical axis. If M=100, Px=20 and Py=10, the X and Y intercepts of the budget line are O 20 and 10. O 5 and 10. O 10 and 20. O impossible to calculate from the figures provided. QUESTION 6 Because leisure is a normal good, an increase in the wage rate will result in O an increase in the quantity of labour supplied because of both the substitution effect and the income effect. O a decrease in the quantity of labour supplied because of the substitution effect and an increase in the quantity of labour supplied because of the income effect. O an increase in the quantity of labour supplied because of the substitution effect and a decrease in the quantity of labour supplied because of the income effect. O an increase in the quantity of labour supplied because of the substitution effect. At low wages the income effect causes an increase in the quantity of labour supplied, but at high wages the income effect causes a decrease in the quantity of labour supplied as the wage rises.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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q 4,5,6 please thank you multichoice
Transcribed Image Text:QUESTION 4
The opportunity cost of going on holiday to an unemployed person is
zero, as the person is not foregoing any wages to take the holiday
equal to the cost of the holiday plus the value of the alternative use of the person's time
equal to the cost of the holiday
zero, as the person does not have a next best alternative
QUESTION 5
Suppose that quantities of two goods, X and Y, are plotted on a chart, with good X on the horizontal axis and good Y is on the vertical axis. If
M=100, Px=20 and Py=10, the X and Y intercepts of the budget line are
20 and 10.
5 and 10.
10 and 20.
impossible to calculate from the figures provided.
QUESTION 6
Because leisure is a normal good, an increase in the wage rate will result in
an increase in the quantity of labour supplied because of both the substitution effect and the income effect.
a decrease in the quantity of labour supplied because of the substitution effect and an increase in the quantity of labour supplied
because of the income effect.
an increase in the quantity of labour supplied because of the substitution effect and a decrease in the quantity of labour supplied
because of the income effect.
an increase in the quantity of labour supplied because of the substitution effect. At low wages the income effect causes an increase in
the quantity of labour supplied, but at high wages the income effect causes a decrease in the quantity of labour supplied as the wage
rises.
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