Workers Typically Require Higher Wages in Order to Work Additional

question 98

Multiple Choice

Workers typically require higher wages in order to work additional hours because of the

• A)Increasing opportunity cost of labor.
• B)Increasing marginal utility of income.
• C)Decreasing value of leisure time forgone.

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Definitions:

Increasing Marginal Product

A situation where each additional unit of input results in an increased amount of output.

Economic Rents

Extra earnings above the minimum amount necessary to keep a factor of production in its current use.

Accounting Costs

The explicit costs of a business, representing the actual outflows of cash for wages, rent, materials, and other tangible inputs.

Economic Costs

The total cost of choosing one action over another, including both explicit (direct monetary costs) and implicit (opportunity costs) factors.