How would you measure the price of an hour of leisure? Explain
What will be an ideal response?
The price of an hour of leisure can be measured by the hourly wage. The opportunity cost of enjoying an hour of leisure is the amount of foregone income that could have been earned at a job.
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The smaller the extent of job rationing, the
A) higher the labor supply. B) lower the labor force participation rate. C) lower potential GDP. D) higher the real wage rate. E) lower the unemployment rate.
When a developing country relies on import substitution,
a. it sacrifices the gains from specialization and comparative advantage b. replaces low-cost foreign goods with high-cost domestic goods c. domestic producers, shielded from foreign competition, usually fail to become efficient d. other countries often retaliate with their own trade restrictions e. All of the answers are correct