Consider two individuals: John and Jenna. John has an opportunity cost of time equal to $50 per hour, while Jenna has an opportunity cost of time equal to $25 per hour
Which of the two individuals has a greater incentive to look for work when unemployed?
In this case, the opportunity cost of time of an individual reflects the amount of income he would generate if he worked for an hour. Since John has a higher opportunity cost of time than Jenna, he can earn higher income than Jenna if he finds work. Hence, John will have a greater incentive to look for work when he is unemployed in comparison to Jenna.
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When the coupon rate on newly issued bonds increases relative to older, outstanding bonds, what happens?
A) The market price of the older bond falls in the secondary market. B) The market price of the older bond rises in the secondary market. C) Older bonds can still be sold at their face value. D) Older bonds will sell for more than their face value.
Wage and MFC differ for a monopsonist because:
A. the monopsonist is forced to pay a wage greater than the worker's MFC. B. the monopsonist must accept the market wage rate. C. workers are not as efficient when employed by a monopsonist. D. any wage increase applies to all workers, not just to the next hired.