MCQOPTIONS
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| 1. |
As the wage rate per hour increases, the opportunity cost of leisure ? |
| A. | remains constant |
| B. | increases since the cost of forgoing one hour of work increases |
| C. | decreases since the customer now has more income to spend |
| D. | may increase of decrease depending on the individual’s preferences. |
| Answer» C. decreases since the customer now has more income to spend | |