Workers typically require higher wages in order to work additional hours because of the

Question

Quizplus · Accepted Answer

As workers work more hours, the opportunity cost of their time increases, as they have to give up more leisure time or time for other activities. Therefore, they require higher wages in order to compensate for this increasing opportunity cost of their time. The marginal utility of income may also play a role, but it is not the primary reason for the higher wages required. The value of leisure time forgone may actually decrease for some workers, as they may value the additional income more than the leisure time they have to give up.

Workers Typically Require Higher Wages in Order to Work Additional