When Your Wages Rise, The

question 2

Multiple Choice

When your wages rise, the:

• A) opportunity cost of an hour of work decreases.
• B) opportunity cost of an hour of leisure stays the same.
• C) cost of working increases.
• D) opportunity cost of an hour of leisure increases.

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Definitions:

U.S. Economy

The economic system of the United States, characterized by a combination of free-market and planned economic activities, and is one of the largest economies globally.

Unemployment Rate

The chunk of the labor force that finds itself unemployed and in active pursuit of a job.

Economy

A system by which goods and services are produced, distributed, and consumed within a society or geographical area.

Point A

A specific position or location often used in graphs or discussions about economic models and theories.