Workers are generally willing to work more hours when wages increase becausethe opportunity cost of leisure increases with higher wages.higher labor incomes are taxed at a lower rate by the government.workers fear wages will soon fall as immigration increases.workers are not motivated to work for higher wages.

A worker in a given hour either use it in work or use in leisure activity. If a worker opt for a leisure activity instead of work, then it would lose the potential wage earning it could earn. Hence, the wage rate is the opportunity cost of opting the leisure activity. The opportunity cost of leisure activity increases as the wage rate increases. Workers are generally willing to work more hours when wage increase because the opportunity cost of leisure increases with higher wages. Answer; Option (A), i.e., opportunity cost of leisure increases with higher wages. ---------------------------------------------------------------- Option (B) is incorrect because higher income is taxed at a higher rate Option (C) and Option (D) are incorrect.

Answered: Workers are generally willing to work…

Business

Economics

Workers are generally willing to work more hours when wages increase because the opportunity cost of leisure increases with higher wages.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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