If a firm offers to pay a worker $10 for each hour of leisure the worker gives up,then the opportunities confronting the worker will be given by the:
A) convex curve from the origin.
B) concave curve from the origin.
C) straight line with a negative slope.
D) straight line with a positive slope.

Question

Quizplus · Accepted Answer

The offer to pay a worker $10 for each hour of leisure given up creates a constant trade-off between leisure and income, represented by a straight line with a negative slope. This is because for each hour of leisure sacrificed, the worker earns an additional $10, implying a constant rate of substitution.

If a Firm Offers to Pay a Worker $10 for Each