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Income Inequalityeconomics-mcqs › income-inequality
Published
1 Jun 2019
Last updated
28 May 2026

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How does an increase in the hourly wage rate affect the opportunity cost of taking leisure time?

Multiple choice question for Income Inequality. Select an option, then review the explanation below.

Choose the correct answer

Explanation

The opportunity cost of leisure grows when the hourly wage increases because each hour spent not working means forgoing a higher amount of earnings.

Practice related questions from the same subject.

  1. 1.Which of the following best describes the Benazir Benefit Income Scheme?
  2. 2.Which category of tax does VAT best represent?
  3. 3.When a tax can be transferred, what determines the actual burden of the tax?
  4. 4.What does tax incidence refer to?
  5. 5.What does a progressive income tax system imply about the tax rate for individuals with higher earnings?

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As the wage rate per hour increases, the opportunity cost of leisure ? - PakMcqs | PakQuizHub