QUESTION 2 Which of the following is true ? Any time that is spent working for a
ID: 1194641 • Letter: Q
Question
QUESTION 2
Which of the following is true?
Any time that is spent working for a paid job is known as the time spent in leisure.
If an individual labor supply curve bends backward at some high wage, then the market supply curve also bends backward.
A person who works more also always get to enjoy more leisure time.
A person's wage or salary is his or her opportunity cost of leisure.
An individual's decision to work in a low paying job or a high paying job is known as the labor-leisure tradeoff.
a.Any time that is spent working for a paid job is known as the time spent in leisure.
b.If an individual labor supply curve bends backward at some high wage, then the market supply curve also bends backward.
c.A person who works more also always get to enjoy more leisure time.
d.A person's wage or salary is his or her opportunity cost of leisure.
e.An individual's decision to work in a low paying job or a high paying job is known as the labor-leisure tradeoff.
Explanation / Answer
The correct answer is d.
A worker's recource is time. This resource can either be spent working or on leisure. For each hour spent in leisure, the worker must let go of the wage he/she could have earned had he/she spent that hour working. Therefore, of spending an hour in leisure, the cost to worker is effectively his/her hourly wage rate.