Related to the Economics in Practice on P

question 22

Multiple Choice

Related to the Economics in Practice on p.28: Which one of the following occurs when an individual enters the paid work force?

• A)The opportunity cost of time for housework increases,because time spent on housework could be spent on money-earning activities.
• B)The opportunity cost of time for housework increases,because money earned at a job can allow individuals to pay someone to do household chores that the individuals used to do themselves.
• C)The opportunity cost of time for housework decreases,because increased earning power makes individuals less likely to do their own housework.
• D)The opportunity cost of time for housework decreases,because as more people enter the work force,businesses have greater incentives to develop innovations that make housework more efficient.

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Definitions:

Consumer Good

A product or commodity that is produced and purchased to satisfy the personal or family needs of the consumer.

Secured Interest

A legal claim or lien on assets or property, granted to a lender as security for the repayment of a debt, giving the lender rights to the collateral if the debt is not repaid.

Commercially Reasonable

A standard in law and business that measures actions against what a reasonable person engaged in commerce would believe is acceptable or customary practice.

Repossessed Vehicle

A vehicle taken back by a lender or seller from the buyer due to failure to make agreed payments.