Asked by Cristina Valadez on May 23, 2024
Verified
If the demand for labor decreases and the supply of labor is unchanged, then the opportunity cost of leisure will decrease.
Opportunity Cost
The expense incurred by not choosing the second-best option while making a decision.
Labor Decreases
A situation where the workforce or the amount of work done decreases due to factors like automation, layoffs, or economic downturns.
- Apprehend the connection between compensation, workforce provision, and the selection process between employment and leisure time.
Verified Answer
DM
Diana MachadoMay 28, 2024
Final Answer :
True
Explanation :
When the demand for labor decreases while the supply remains unchanged, wages typically decrease. This means individuals earn less for working, making the cost of forgoing work (to enjoy leisure) lower, hence reducing the opportunity cost of leisure.
Learning Objectives
- Apprehend the connection between compensation, workforce provision, and the selection process between employment and leisure time.