Among the People Who Are Characterized Below, Who Has the Highest

question 442

Multiple Choice

Among the people who are characterized below, who has the highest opportunity cost of leisure?

• A)a veterinarian who earns $25 per hour and who goes surfing during her leisure time
• B)a professional tennis player who earns $50 per hour giving tennis lessons and who watches TV during his leisure time
• C)a retail clerk who earns $15 per hour and who plays computer games during his leisure time
• D)a CPA who earns $150 per hour and who golfs during her leisure time

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Definitions:

Tax Receipts

The income generated for a government through taxation, which can include revenue from individuals, corporations, and other taxes.

Budget Deficit

A situation where a government's expenditures exceed its revenues, leading to the need for borrowing or using saved reserves.

Marginal Propensity To Consume

The ratio of the change in consumption spending to the change in disposable income, indicating how much of additional income will be spent.

John Maynard Keynes

A UK-based economist who significantly transformed both the theoretical and practical aspects of macroeconomics, as well as the economic strategies executed by governments.