and income, indicate True (T) or False (F): 3. Regarding hours of work a. The \"
ID: 1150365 • Letter: A
Question
and income, indicate True (T) or False (F): 3. Regarding hours of work a. The "price" of an hour of free time is the hourly wage rate. b. From Figure 3.2 (Unit 3.0), we can infer that Norway has a higher GDP per capita than the US, as the Norwegians work more hours than the Americans. An increase in the real wage rate would encourage you to work more as the opportunity cost of leisure becomes higher. An increase in the real wage rate would encourage you to work less as your income from working a given number of hours is now higher than before. c. d.Explanation / Answer
Answer for a)
Price of an hour free time is the wage we lost for that hour hence it is hourly wage
Therefore answer is true
Answer for b)
On X axis it is free time in hour foe each country where Norway is higher in free time hours than America hence statement given is contradicting, therefore Answer is False
Answer for C)
Increassed wage rate is an increase in opportunity cost if leisure chosen over work hence this statement is true
Answer for D)
Increaseing wage rate beyond certain point shows unlikliness to work more and show inverted form of curve after this point as labour choose leisure over work Hence true
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