If Tom Spends 4 Hours a Day on Facebook,and the Minimum

question 84

Essay

If Tom spends 4 hours a day on Facebook,and the minimum wage in his country is $7 per hour.
a)What is his opportunity cost of spending time on Facebook?
b)Given that spending time on Facebook has an opportunity cost,does this analysis suggest that Tom should work rather than spend his time on social networking?

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Definitions:

Horizontal Axis

The “left-right” or “west-east” measurement line on a graph or grid.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where supply equals demand.

Demand

The desire of purchasers, consumers, clients, or agents for a particular commodity, service, or other resource, combined with their capacity to purchase it.

Vertical Straight Line

In a graph, a line that runs straight up and down, indicating that the variable on the x-axis remains constant.