The opportunity cost of leisure is approximated by:

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next-best alternative forgone. Therefore, the opportunity cost of leisure is the wages that an individual could have earned if they had worked during that time. Hence, option B, an individual's hourly real wage rate, represents the best approximation of the opportunity cost of leisure. Options A, C, and D do not directly relate to the concept of opportunity cost.

The Opportunity Cost of Leisure Is Approximated By