Related to the Economics in Practice on page 81: Which of the following best explains why the people who wait for hours to acquire tickets to free performances earn less on average than the people who actually see those performances?
A) The value of time spent waiting in line is less for people who earn less money.
B) People who earn more money are less likely to be aware of the opportunity to acquire free tickets.
C) High-wage individuals are more likely to have schedule conflicts that prevent them from using their tickets.
D) People interested in live performances are likely to have access to other forms of entertainment, such as television and radio.

Question

Quizplus · Accepted Answer

People who earn less money have a lower opportunity cost for waiting in line for a longer time because their time is worth less in monetary terms. Therefore, they are more likely to wait for hours to acquire free tickets for performances. On the other hand, people who earn more money have a higher opportunity cost for waiting in line for a longer time because their time is worth more in monetary terms. Hence, they are less likely to wait for hours to acquire free tickets for performances.

Related to the Economics in Practice on Page 81: Which