11. Let L be leisure and Y be income then the optimal
work-leisure position is achieved where:
a. the MRS L,Y is equal to the wage rate
b. the difference between the MRS L,Y and the wage is
greatest
c. the wage rate is greatest
d. the MRS L,Y is greatest
12. A household will tend to substitute goods for time in the
production of commodities if:
a. a household member’s market wage increases
b. a household member’s market wage...