The Price of an Extra Hour of Leisure Is

question 5

Multiple Choice

The price of an extra hour of leisure is:

• A)$1.
• B)the hourly wage rate.
• C)the same as the price of money.
• D)the total utility of labor.

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Definitions:

Inflation Rate

measures the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Consumer Price Index

An indicator that assesses the typical shift through time in the expenses urban purchasers face for a predetermined array of consumer items and services.

Inflation Rate

The percentage increase in the general level of prices for goods and services over a period.

Consumer Price Index

A measure of the average shift in costs for various consumer items and services bought by urban dwellers, the Consumer Price Index reveals how these prices change over time.