James, the President of the Trade Union of His Company

question 18

Multiple Choice

James, the president of the trade union of his company, was removed from his post as the union members were discontented about the high-handedness he showed in leading the union. As president, James took important decisions without consulting anyone and acted on his whim. The information given in the scenario indicates that James is ideally a(n) _____.

• A) free-rein leader
• B) laissez-faire leader
• C) autocratic leader
• D) bureaucratic leader

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Definitions:

Optimal Consumption

The mix of consumer purchases that maximizes the utility or satisfaction obtained from a given expenditure level.

Indifference Curve

A graph representing combinations of goods or services among which a consumer is indifferent, meaning they have no preference for one combination over another.

Price Increase

A situation where the cost of goods or services rises over a period of time.

Optimal Consumption

A point at which an individual achieves the highest possible satisfaction from their consumption choices given their income and the prices of goods and services.