P Take a Test - salim rennewi - Google Chrome mathxl.com/Student/PlayerTest.aspx?testld=229402824¢erwin=yes Economics 2152B 001 FW20 Test: Final Exam This Question: 5 pts Consider the following one-period model Consumer Utility function over consumption (C) and leisure (L) U(C,L) = C31 3 Total hours: H = 40 Labour hours: N- = H -L Non-labour income: IT Lump-sum tax: T Hourly wage: w Firm Production function: Y =ZF(N" ) = zN Total factor productivity: z - 5 Government Government spending (exogenous) G - 30 Suppose that the total factor productivity, z, increases to 8. What is the income effect of this wage change on labour supply(N )? O A. -4.69 O B. -3.56 O C. +4.69 OD. +3.56 E. None of the above Click to select your answer. S Type here to search