The wage rate is the opportunity cost of
A)working.
B)working overtime.
C)leisure.
D)consumption.

Question

Quizplus · Accepted Answer

The opportunity cost of working is the potential income that could have been earned from leisure time. The opportunity cost of working overtime is the potential income that could have been earned from regular working hours. The wage rate is the amount of money earned per unit of work, and is not directly related to consumption. Therefore, the best choice is C, leisure.

The Wage Rate Is the Opportunity Cost of