Suppose You Have Recently Graduated and Have Been Offered a Salary

question 83

Multiple Choice

Suppose you have recently graduated and have been offered a salary position at a reputable accounting firm of $125,000 (including all benefits) per year. After much consideration, you turn down the offer to start your own accounting firm. You pay yourself $75,000 (including all benefits) a year. Which of the following represents the explicit opportunity cost of your time?

• A)$75,000
• B)$50,000
• C)$100,000
• D)$125,000

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Definitions:

Neurotic Personality

A personality type characterized by a pervasive pattern of emotional instability and anxiety.

Karen Horney

A German psychoanalyst known for her work in the psychology of women and for founding the theory of neurosis based on social and cultural factors, rather than simply biological ones.

Raised Without Love

Refers to the developmental consequences and psychological impacts of growing up in an environment lacking emotional warmth, affection, or parental love.

Psychosexual Stages

Freud's theory of five developmental stages (oral, anal, phallic, latency, and genital) that children pass through, each characterized by sexual pleasure in parts of the body.