For a Worker,the Opportunity Cost of an Hour of Leisure

question 325

Multiple Choice

For a worker,the opportunity cost of an hour of leisure

• A) rises by $5 when her wage rises by $5 per hour.
• B) falls by $5 when her wage rises by $5 per hour.
• C) is the same for a corporate chief executive officer as it is for a garbage-collection worker.
• D) is determined by factors that are unrelated to her hourly wage.

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Definitions:

Causality

The relationship between cause and effect, where one event is understood to be the direct consequence of another.

Memory Loss

The unusual forgetfulness or inability to remember past events and information, often a symptom of neurological conditions.

Post Hoc, Ergo Propter Hoc

A logical fallacy that assumes a cause-and-effect relationship because one event follows another in time.

Labor Market

A marketplace where employers find workers and workers find jobs; the interaction determines wages, employment levels, and working conditions.