If there is an exogenous increase in the total endowment of labour time , the supply of labour schedule, as derived above,
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2 marksMicroeconomicsBudget constraint and consumer equilibriumLabour supply and intertemporal choiceModerateabout 3 min
DSE 2008 Question 44: Budget constraint and consumer equilibrium
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If there is an exogenous increase in the total endowment of labour time (L̅), the supply of labour schedule, as derived above, (A) shifts up (B) shifts down (C) does not shift (D) the information available so far is not adequate to answer this question
Also written as: If there is an exogenous increase in the total endowment of labour time (L_bar), the supply of labour schedule, as derived above,
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What this question tests
This question is on Labour supply and intertemporal choice, part of Budget constraint and consumer equilibrium in Microeconomics.
Treating leisure and future consumption as goods: the labour-leisure choice, saving and borrowing.
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