1.

Which attribute of own-wage elasticity of labour supply is best supported by the U.S. data in Elder, Haider, and Orr (2020)?

A.The elasticity has increased over time.

B.Men have a higher elasticity than women.

C.The elasticity is usually positive but is occasionally negative.

D.Married women have a much higher elasticity than single women.

2. Saved Consider a benefits program with a work requirement. Which scenario is LEAST likely?

A. A working individual will not change their hours worked in response to the work requirement.

B.An individual will choose to work less than the requirement and not receive benefits.

C.An individual will reduce their hours worked to work exactly the number of hours required.

D.A worker will leave the workforce in response to the work requirement.

3. What is the response to a lump-sum subsidy for child care, available only for parents who work? Define 'working parents' as parents who worked before the subsidy and 'non-working parents' as those who did not work before the subsidy.

A.The substitution effect of the subsidy is to decrease the amount of the consumption good.

B.The subsidy increases the hours worked for working and non-working parents.

C.The subsidy increases the hours worked only for working parents.

D.The subsidy encourages non-working parents to start working.

4. For a wage decrease, the income effect is to consume ________ leisure, and the substitution effect is to consume ________ leisure.

A.More; more

B.Less; more

C.Less; less

D.More; less

5. What is the most likely effect of an increase in the wage?

A.The substitution effect is to consume more of the consumption good

B.The income effect is to consume less of the consumption good

C.The income effect is to consume less leisure

D.The substitution effect is to consume more leisure

Give explanation