Denise Decides to Spend Three Hours Working Overtime Rather Than

question 340

Multiple Choice

Denise decides to spend three hours working overtime rather than watching a video with her friends.She earns $10 an hour.Her opportunity cost of working is

• A) the $30 she earns working.
• B) the $30 minus the enjoyment she would have received from watching the video.
• C) the enjoyment she would have received had she watched the video.
• D) nothing, since she would have received less than $30 of enjoyment from the video.

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Definitions:

Labor Market

The supply and demand for labor, where employers seek workers and employees seek jobs.

Workers Hired

The number of employees that a company or organization employs or brings onboard to perform specific jobs.

Labor Demand Curve

A graphical representation showing the number of workers that businesses are willing and able to hire at different wage rates.

Marginal Expenditure Curve

A graph that shows the additional cost incurred by acquiring one more unit of a good or service.