Javon has 80 hours per week to allocate between labor and leisure. Graph hours of leisure per week on the horizontal axis and income per week on the vertical axis. If Javon's hourly wage is $8, then the opportunity cost of an hour of leisure is:
A) $8.
B) $10.
C) $640.
D) $800.

Question

Quizplus · Accepted Answer

The opportunity cost of an hour of leisure is the wage Javon would earn if he worked that hour instead. Since his hourly wage is $8, the opportunity cost of an hour of leisure is $8.

Javon Has 80 Hours Per Week to Allocate Between Labor