Homework SourseSuppose you are earning 12 an hour at the local grocery stor
Suppose you are earning $12 an hour at the local grocery store. At that wage you have decided to work 20 hours a week. If your wage were to increase to $19 an hour, thinking like an economist using the economic decision rule, you would most likely choose to work:
| A. | more hours because the opportunity cost of leisure has risen. | |
| B. | fewer hours because the opportunity cost of leisure has fallen. | |
| C. | fewer hours because the opportunity cost of work has fallen. | |
| D. | more hours because the opportunity cost of work has risen. |
Solution
Ans is option D, because if i am idle, opportunity cost of work has increased to $19, i,e. i lose $19 if i am idle
