- 10 In The Leisure Income Model Taxing Wage Income Causes A The Budget Constraint To Kink Or Rotate Inward B Workers 1 (214.74 KiB) Viewed 34 times
10. In the leisure-income model, taxing wage income causes a. The budget constraint to kink or rotate inward b. Workers to always change their work habits dramatically c. Utility to increase d. All of the above 11. Perfectly competitive markets guarantee an efficient distribution of goods across consumers. Why is this? a. Under perfect competition, consumers have thè same preferences b. Under perfect competition, consumers face the same prices c. Under perfect competition, producers produce the efficient combination of goods. d. Under perfect competition, the MRT equals the MRS consumers.