For a worker, the opportunity cost of an hour of leisure
A)rises by $8 when his wage rises by $8 per hour.
B)falls by $8 when his wage rises by $8 per hour.
C)is the same for a celebrity talk-show host as it is for a teacher.
D)is determined by factors that are unrelated to his hourly wage.

Question

Quizplus · Accepted Answer

The opportunity cost of an hour of leisure is the wage the worker forgoes by not working. Therefore, if the wage rises by $8 per hour, the opportunity cost of leisure also rises by $8.

For a Worker, the Opportunity Cost of an Hour of Leisure