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The other thing is that in life there’s a trade off between leisure time and work time. The more you get paid, the more likely you are to want to work more. If
by tuna-piano 9y ago
The other thing is that in life there’s a trade off between leisure time and work time. The more you get paid, the more likely you are to want to work more. If you only make $7 an hour, your opportunity cost for an hour of TV is $7. If you make $100, your opportunity cost is $100.
If course it isn’t that simple, and there are other effects (google the labor s curve), but that’s the general idea.