The opportunity cost of leisure will fall if

Question

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The opportunity cost of leisure is the value of the forgone leisure time when choosing to work. If the wage rate decreases, the individual will have to work longer hours to earn the same amount of income. This means they will have less leisure time and therefore the opportunity cost of leisure will increase. Conversely, if the wage rate increases, the individual can earn the same amount of income in less time, giving them more leisure time and decreasing the opportunity cost of leisure. Nonlabor income does not directly affect the opportunity cost of leisure.

The Opportunity Cost of Leisure Will Fall If