00:01
So here we're being tested on the concept of opportunity cost in the context of mothers who choose not to work outside the home, right? so we've got a bunch of situations and we need to say whether they drive up the opportunity cost or down the opportunity cost of staying at home, right? higher education.
00:22
Well, this is pretty straightforward, right? higher education will increase wages, and that increases the opportunity cost of not working.
00:35
So if you choose to work in the home and not in the market, it will increase your opportunity cost because you are foregoing higher wages.
00:46
B.
00:49
Higher unemployment.
00:52
Well, now we've got the exact reverse.
00:59
Right? we have a lower chance of job, which means that the opportunity cost is going down, right? if there's lots of unemployment, the labor market is cold, you're going to spend more time unemployed, right? so if you, on average, spend more time unemployed, the cost of not looking for work in general is lower.
01:31
Right? spending more on time unemployed is like accepting a lower average wage...