16. The elasticity of labor supply (Es)based on Ashenfelter et al.'s following table is: Tab le 2b : Simple Difference Tab le (Balanced Panel): (no other controls) Change in Revenue per Mile Change in Miles Driven 1996 Fare Increase +$0.15*#* (+ 19 2 %) - 819 miles* (- 5.69%) a. Es =(.150)/(19.2) b. Es= -(819)/(--5.6) C. Es=-5.6/19.2 d. Es= 19.2/-5.6 e. Es= 19.2/-819 17. Assume the following labor supply curves: N = C+0.64 W - 2.33 Yo + 0.08 K ii) N=C+ 1.33 W +0.59 Yo - 0.28 K iii) N= C - 1.33 W - 0.59 Yo - 0.28 K iv) N =C+ 1.33 W + 0.59 Yo + 0.28 K where, N = hours of work, C = a constant, W = wages per hour, Yo = non-earned income, and K = number of kids. Which is inconsistent with economic theory? a. i b. ii c. iii d. iv e. None 18. What is the budget line for consumption (C) and leisure (Z) if a person faces a constant wage of $5 per hour, there are 168 hours in the week to work, and she receives non-labor income of $200 per week? A. C= 200 B. C+ 5L = 1,040 C. L = 5C+ 200 D. C-5L = 1,040 E. 5C-L = 200 19. On the negatively sloped portion of a backward-bending labor supply curve: a. The worker will supply more hours of labor if the wage falls. b. The income effect dominates the substitution effect. c. The worker's budget line is not tangent to her indifference curve. d. Both (A) and (B). e. All three of (A), (B), and (C)