b. lower wages for ea pini apartment rents, increases in population, and consume
ID: 1129896 • Letter: B
Question
b. lower wages for ea pini apartment rents, increases in population, and consumer expectations of higher house prices in the future c. lower wages for carpenters, lower wood prices, decreases in consumer incomes, Jower apartment rents, decreases in population, and consu in the future lower wages for carpenters, higher wood prices, decreases in consumer incomes, higher apartment rents, decreases in population, and consumer expectations of higher house d. prices in the future Scenario 12-2 Marko has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where he earns $10 per hour. During the summer, Marko drives a tour bus around the ski resort earning $12 per hour. 23. Refer to Scenario 12-2. When Marko switches from his summer job to his winter job, what happens? a. He will divide his time equally between work and leisure b. His work schedule will remain unchanged. c. He will work more hours because the opportunity cost of leisure increases the opportunity cost of leisure decreases. What does it mean when a budget constraint shifts outward, in a parallel fashion? a. The consumer is indifferent between goods X and Y b· The outward shift could only have been caused by an increase in the price of one of the 24. goods. c. The outward shift could only have been caused by an increase in income d. The consumer can reach a higher indifference curve.Explanation / Answer
23
Since Marko works as a lift attendant at a ski resort and earns $10 per hour in the winter. But in summer he can earn $12 per hour as a tour bus driver around the ski resort. So when he switches from his summer job to his winter job, his opportunity cost of leisure decrease, because he earns per hour less in winter, compared to summer.
It means in winter if he takes more leisure, then he forgives less income. So he will take more leisure and work less in the winter.
Hence option d is the correct answer.
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