Question

Leisure can be

A	either a normal good or an inferior good.
B	only a normal good.
C	considered to be an inferior good when a parallel outward shift of the budget line leads to an increase in leisure .
D	considered to be a normal good when a parallel outward shift of the budget line leads to a decrease in leisure.

Answer 1

If leisure is a normal good, an increase in income would increase the amount of leisure and if it is an inferior good increase in the income would decrease the amount of leisure and it can be the normal good or inferior good.

Therefore (a) is the answer to this question

Might not always be a strictly normal good and that is the reason why

(b) is wrong

If parallel outward shift occurs it would be normal if increase in income increases the leisure an outward shift occurs it would be inferior if amount of leisure decreases

(c,d) are wrong because the statements are oppositely mention