You lose $20 from your wallet and decide to miss an hour from work in order to search for it.To an economist,this means that:

Question

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The decision to miss an hour of work to search for the lost $20 suggests that the expected value of finding the money is greater than the expected value of earning money during that hour of work. This implies that the individual estimates the value of their time searching for the lost money to be greater than their hourly wage. Therefore, option C would be the best choice. Option A is incorrect because we do not have information about the individual's estimated cost of searching for one hour. Option B may be true, but it does not necessarily explain the individual's decision to miss work to search for the lost money. Option D is incorrect because the decision to search for the lost money may be rational if the expected value of finding the money exceeds the cost of the time spent searching for it.

You Lose $20 from Your Wallet and Decide to Miss