Question:

As the wage rate per hour increases, the opportunity cost of leisure:?

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As the wage rate per hour increases, the opportunity cost of leisure:

a. remains constant.

b. increases since the cost of forgoing one hour of work increases.

c. may increase or decrease depending on the individual's preferences.

d. decreases since the consumer now has more income to spend.

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  1. b.increases since the cost of forgoing one hour of work increases.

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