As the real wage increases, the opportunity cost of working outside the home increases.

Question

Quizplus · Accepted Answer

When the real wage increases, individuals have the option to work longer hours and earn more income. However, this also means that working outside the home will come at a greater opportunity cost, such as giving up leisure time or time spent with family. Therefore, as the real wage increases, the opportunity cost of working outside the home also increases.

As the Real Wage Increases, the Opportunity Cost of Working