Suppose you are earning $12 an hour at the local grocery store. At that wage you

Question

Suppose you are earning $12 an hour at the local grocery store. At that wage you have decided to work 20 hours a week. If your wage were to increase to $19 an hour, thinking like an economist using the economic decision rule, you would most likely choose to work:

A. more hours because the opportunity cost of leisure has risen. B. fewer hours because the opportunity cost of leisure has fallen. C. fewer hours because the opportunity cost of work has fallen. D. more hours because the opportunity cost of work has risen.

Explanation / Answer

Ans is option D, because if i am idle, opportunity cost of work has increased to $19, i,e. i lose $19 if i am idle

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.