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The Hourly Wage Rate Is the Opportunity Cost of One

Question 126

Multiple Choice

The hourly wage rate is the opportunity cost of one hour of leisure because


A) that is what a person gives up to enjoy the hour of leisure time.
B) the person must work for a living.
C) the person prefers leisure to work regardless of the wage.
D) the person's substitution effect exceeds his or her income effect.

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