Lisa's hourly pay increases from $8 to $10 as her performance improves.We can conclude that:

Question

Quizplus · Accepted Answer

The increase in Lisa's hourly pay indicates that her opportunity cost of leisure has increased. Opportunity cost is the value of the next best alternative forgone and in this case, the next best alternative to working is leisure. As Lisa's pay has increased, the opportunity cost of taking leisure time (i.e. not working) has gone up, implying that the cost of leisure has increased. Therefore, choice B is the correct answer.

Lisa's Hourly Pay Increases from $8 to $10 as Her