The opportunity cost of an hour of leisure:

A) is always assumed to be equal to the minimum wage.
B) is the hourly wage rate.
C) increases if the hour of leisure time is spent in an unproductive activity.
D) decreases if the hour of leisure is spent in a productive activity.

Question

Sreeram Panguluri · Accepted Answer

Final Answer : B, Explanation :  The opportunity cost of an hour of leisure is the value of the next best alternative foregone, which in this case is the wage that could have been earned during that hour of leisure time. Therefore, it is the hourly wage rate. Choices A, C, and D are incorrect because they do not accurately reflect the concept of opportunity cost.

The opportunity cost of an hour of leisure:

A) is always assumed to be equal to the minimum wage.
B) is the hourly wage rate.
C) increases if the hour of leisure time is spent in an unproductive activity.
D) decreases if the hour of leisure is spent in a productive activity.

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Related questions

The opportunity cost of an hour of leisure:A) is always assumed to be equal to the minimum wage.B) is the hourly wage rate.C) increases if the hour of leisure time is spent in an unproductive activity.D) decreases if the hour of leisure is spent in a productive activity.

Definitions

Learning Objectives

Learning Objectives

Related questions

The opportunity cost of an hour of leisure:

A) is always assumed to be equal to the minimum wage.
B) is the hourly wage rate.
C) increases if the hour of leisure time is spent in an unproductive activity.
D) decreases if the hour of leisure is spent in a productive activity.