The price of an extra hour of leisure is:
A) $1.
B) the hourly wage rate.
C) the same as the price of money.
D) the total utility of labour.

Question

Quizplus · Accepted Answer

The price of an extra hour of leisure is the hourly wage rate. This is because in order to have an extra hour of leisure, one has to give up the opportunity to work and earn an hourly wage. Therefore, the price of that hour of leisure is the same as the wage rate that could have been earned during that hour.

The Price of an Extra Hour of Leisure Is