Q
As the wage rate per hour increases, the opportunity cost of leisure ?
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A
A. Remains constant
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B
B. Increases since the cost of forgoing one hour of work increases
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C
C. Decreases since the customer now has more income to spend
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D
D. May increase of decrease depending on the individualβs preferences.
Correct Answer:
B. B. Increases since the cost of forgoing one hour of work increases
