Related to the Economics in Practice on page 26: 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.

Question

Quizplus · Accepted Answer

When an individual enters the paid workforce, the opportunity cost of time spent on housework increases because that time could alternatively be used to earn money. This reflects a fundamental economic principle that the value of the next best alternative (in this case, earning income) represents the opportunity cost of a chosen activity (doing housework).

Related to the Economics in Practice on Page 26: Which