Which of the following expressions illustrates the point that lifetime consumption (over a two-period framework) should equal lifetime earnings? Assume that the rate of interest is zero. C denotes consumption, W denotes wages, H denotes hours, I denotes leisure, and the subscript denotes the periods. Multiple Choice G + With = ( 2 + W 2 H2 OG + C 2 = With + W 2 H 2 O Utility = U (C1, C2- 11- 12) G * C 2 = WTH1 + W 2 H 2 O G " ( 2 = W, ( Hy + H 2 )In order to estimate the pure cohort effect, we need to: 10 Multiple Choice O isolate cohort effects from macroeconomic business cycle effects and time effects. O isolate cohort effects from age effects only. O isolate cohort effects from macroeconomic business cycle effects only. O isolate cohort effects from time effects only. O isolate cohort effects from age effects and macroeconomic business cycle effects.11 In the framework of the household production model, if there is an increase in the wage rate, the primary impact that we would expect is: Multiple Choice O an intertemporal substitution effect. O a substitution effect away from the production of the goods-intensive commodity. O an increase in early retirement. O a substitution effect away from the production of the time-intensive commodity. O a rise in fertility.Research regarding the impact of Quebec's former program called 'Allowance for Newborn Children' showed that: 12 Multiple Choice 0 Not very many individuals benetted Fertility rates actually responded negatively The program had a neutral impact on fertility Fertility rates did respond positively The findings were inconclusive OOOO What is the primary impact that is expected from an anticipated evolutionary wage change over the life cycle? 13 Multiple Choice O An inter-temporal income response O The income effect dominating the substitution effect O None of the answer choices are correct. O The substitution effect dominating the income effect O An inter-temporal substitution response14 Consider the labour supply responsiveness to wage changes of various types. In what order would we expect this elasticity to be, from the largest response to the smallest response? Multiple Choice O permanent unanticipated, evolutionary anticipated, transitory unanticipated O transitory unanticipated, permanent unanticipated, evolutionary anticipated O evolutionary anticipated, transitory unanticipated, permanent unanticipated O transitory unanticipated, evolutionary anticipated, permanent unanticipated O evolutionary anticipated, permanent unanticipated, transitory unanticipatedAccording to some empirical research, the introduction ofthe birth control pills: 15 Multiple Choice 0 reduced fertility rate in the 1960s for married women. but did not lead them to acquire more education. reduced the fertility rate in the 19605 for married women. thus inducing them to acquire more education. delayed fertility for married women but did not increase their labour supply in 1960s. delayed fertility for young women and increased labour supply in 1960s. @000 reduced fertility rate in 1960s for single women, thus inducing them to acquire more education. 2 Based on the household production model, which of the following will lead to a definite increase in the amount of leisure taken? Multiple Choice O a decrease in the preparation time for raw food O a decrease in the price of raw food O a decrease in the price of precooked food O an increase in the wage rate O better food quality3 Consider an evolutionary wage change. An intertemporal substitution would mean that: Multiple Choice O A forward-thinking consumer will buy less leisure because it is a normal good and he/she has received a raise. O A forward-thinking consumer will work less when the returns to doing so are highest. O A forward-thinking consumer will buy more leisure because it is a normal good and he/she has received a raise. O A forward-thinking consumer will work more when the returns to doing so are highest. O A forward-thinking consumer will work more when the returns to doing so are lowest.Fill in the blanks of the following statement. Individuals plan out their given their environment. 4 Multiple Choice O lifetime labour supply; working O lifetime labour supply; retirement O expected earnings; expected lifetime labour market O lifetime labour supply; expected lifetime labour market O short run labour supply; permanent labour market5 Which of the following is NOT a life-cycle phenomenon? Multiple Choice O retirement decisions O The number of hours to work O All of these labour supply choices are life-cycle in nature O fertility decisions of women O marital decisions6 Which of the following variables is not associated with the household production framework? Multiple Choice O The preparation time involved for cooking and housework O None of these above, as they all are O The price of a unit of nutrition from pre-cooked (prepared) food O The price of a unit of nutrition from raw food O The price of leisure (the wage)7 Which of the following is a cohort effect? Multiple Choice O When person A has different preferences regarding leisure and income because of geographical differences O When person A is born 10 years after person B, and this person has different preferences regarding leisure and income than person A because they were born in different social climates O When person A is born 10 years after person B, and this person has different preferences regarding leisure and income than person A because of the age difference O When person A has similar preferences regarding leisure and income despite of geographical differences O When person A is born in the same year as person B, and this person has different preferences regarding leisure and income than person A8 Fertility rates are lower in the higher income families and wealthier countries because: Multiple Choice O The cost of living is higher for higher income families and wealthier countries. O Children are not normal goods. O The cost of raising children is higher in higher income families. O Potential earnings of women are higher for higher income families and in wealthier countries. O The Education level is higher for higher income families.9 Which of the following events will likely cause the largest labour supply response? Multiple Choice O Permanent anticipated wage increase O Transitory unanticipated wage increase O Evolutionary anticipated wage increase O Permanent anticipated wage decrease O Evolutionary unanticipated wage increase