Melody Decides to Spend Three Hours Working Overtime Rather Than

question 106

Multiple Choice

Melody decides to spend three hours working overtime rather than going to the park with her friends.She earns $20 per hour for overtime work.Her opportunity cost of working is

• A)the $60 she earns working.
• B)the $60 minus the enjoyment she would have received from going to the park.
• C)the enjoyment she would have received had she gone to the park.
• D)nothing,since she would have received less than $60 worth of enjoyment from going to the park.

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Definitions:

Equilibrium Market Wage Rate

The wage rate at which the quantity of labor firms wish to employ equals the quantity of labor workers wish to supply.

Quantity Demanded

The overall volume of a commodity or service that is desired and can be bought by consumers at a specific price point.

Market Wage Rate

This is the prevailing rate of pay for workers in a particular job or industry, determined by the supply of and demand for labor.

Power Cords

Electrical cables that connect an appliance to the main electricity supply.