When wages fall,the
A) opportunity cost of an hour of work increases.
B) opportunity cost of an hour of leisure (not working)stays the same.
C) cost of working increases.
D) opportunity cost of an hour of leisure (not working)decreases.
E) opportunity cost of an hour of leisure (not working)increases.

Question

Quizplus · Accepted Answer

When wages fall, the opportunity cost of working decreases because the individual is giving up less income by choosing leisure instead of work. As a result, the opportunity cost of an hour of leisure (not working) increases because the income that could have been earned by working is now lower.

When Wages Fall,the