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Asked by Taylyn Vences on Jul 15, 2024

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Among the people who are characterized below, who has the highest opportunity cost of leisure?

A) An electrical engineer who earns $195 per hour and who plays golf during her leisure time
B) A CEO who earns $225 per hour and who sleeps during his leisure time
C) A retail clerk who earns $18 per hour and who watches TV during her leisure time
D) A waiter who earns $14 per hour and who reads poetry during his leisure time

Opportunity Cost

The cost of foregoing the next best alternative when making a decision.

Electrical Engineer

A professional skilled in designing, developing, and maintaining electrical systems and components to required specifications, focusing on safety, reliability, and sustainability.

Leisure Time

Time available for relaxation or activities of choice not related to employment or compulsory activities.

  • Acquire knowledge on how the opportunity cost associated with leisure activities affects work-related decisions and the availability of labor.
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Seema SinghJul 17, 2024
Final Answer :
B
Explanation :
The opportunity cost of leisure is the income one foregoes by choosing leisure over work. The CEO, earning $225 per hour, has the highest opportunity cost for their leisure time since they are foregoing the highest amount of income to engage in leisure activities.

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