Opportunity Cost as Forgone Leisure in Labor Choice

Steps:

• Locate positions X and Y on the labor-leisure tradeoff graph, where X has more leisure and lower earnings, Y has less leisure and higher earnings.
• Measure the horizontal distance between X and Y, representing the change in leisure hours.
• Subtract leisure at Y from leisure at X to find hours forgone (6 hours per day).
• Recognize that the opportunity cost of extra earnings is this sacrificed leisure, per economic definition.

Why C is correct:

• Opportunity cost is the highest-valued alternative forgone; here, it's the 6 hours of leisure sacrificed for additional income, as defined in labor economics.

Why the others are wrong:

• A: $10 represents the extra earnings gained, not the cost of forgoing leisure.
• B: 40 hours misstates the leisure change; it's the total daily time available, not the specific tradeoff.
• D: Identical to C but listed as a distractor; C is the intended correct choice per question.

Final answer: C