Javon has 80 hours per week to allocate between labour and leisure.Graph hours of leisure per week on the horizontal axis and income per week on the vertical axis.If Javon's hourly wage is $8,then the opportunity cost of an hour of leisure is:
A) $8.
B) $10.
C) $640.
D) $800.

Question

Quizplus · Accepted Answer

The opportunity cost of an hour of leisure equals the wage that could have been earned during that hour of leisure. Given that Javon's hourly wage is $8, the opportunity cost of an hour of leisure is $8. Therefore, the answer is A) $8.

Without additional information about Javon's preferences or budget constraints, it is not possible to determine the best choice(s) for how to allocate his time between labour and leisure.

Javon Has 80 Hours Per Week to Allocate Between Labour