The price of an extra hour of leisure is:
A)$1.
B)the hourly wage rate.
C)the same as the price of money.
D)the total utility of labor.

Question

Quizplus · Accepted Answer

The price of an extra hour of leisure is determined by the hourly wage rate because it represents the opportunity cost of choosing leisure over work. If someone earns $10 an hour at their job and they choose to take an hour off to relax instead, the cost of that hour is $10. Therefore, the price of an extra hour of leisure is equivalent to the hourly wage rate.

The Price of an Extra Hour of Leisure Is