Related to the Economics in Practice on page 3: According to the Economics in Practice, when rains in rural India are plentiful, the opportunity cost of having someone out of the labor force, and therefore unable to work in agricultural production,
A) increases.
B) decreases.
C) remains unchanged.
D) is zero, because the person is out of the labor force.

Question

Quizplus · Accepted Answer

When rains are plentiful, agricultural productivity increases, making labor more valuable. Therefore, the opportunity cost of having someone out of the labor force increases because their potential contribution to agricultural production is higher.

Related to the Economics in Practice on Page 3: According