Question

hi can you plzz answer all the true and false question in detail

9. A decrease in a wage taxes causes the opportunity cost of leisure to increase. a. True b. False 10 In the typical leisure/consumption model, in the price of the composite consumption good. a. True increase in the wage is equivalent to a decrease an b. False 11. An increase in the interest rate is an increase in the opportunity cost of consuming in the future. a. True b. False 12. In the worker's leisure/consumption model, the wage is the same as the price of consumption. a. True b. False 13. Since interest rates for borrowing are usually higher than interest rates for savings, the intertemporal budget constraint has an inward kink (points in) for individuals that earm income now and in the future. a. True b. False 16. If leisure is an inferior good, then an increase in wages will cause workers to work more. a. True b. False 17. Taxing savings in ways that lower the interest rate received by savers will lower savings. a. True b. False 18. If you earn income now and expect to live off savings in the future, then a raise now will cause you to save more so long as consumption -- now and in the future - is a normal good True a. b. False

Answer 1

9. True. As lower wage tax means higher disposable income. Thus more leisure you consume now, more you are losing on your income.

10. False, as decrease in price of consumption good has no direct impact on cost of leisure while increase in income increases the opportunity cost of leisure.

11. False, as higher interest rates means now you have to save less in current period for same consumption level in future period. Thus opportunity cost of future consumption falls.

12. True, as wage means opportunity cost of leisure, and which is in other way the price of consumption.