Gwen's Decision to Buy a New Television Instead of a Bicycle

question 17

Multiple Choice

Gwen's decision to buy a new television instead of a bicycle for the same price

• A)means that opportunity cost is zero since both cost the same amount.
• B)would not have involved trade-off and opportunity cost if Gwen had decided to put the money in a bank CD instead.
• C)would not imply a trade-off because of scarcity if Gwen were a multimillionaire.
• D)means that the opportunity cost to Gwen is the bicycle that she has given up.

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Definitions:

Vroom and Yetton

A decision-making model that outlines how leaders can choose their leadership styles based on the context, particularly the importance of quality and the acceptance of the decision by others.

Autocratic Decision

A decision-making style where the leader makes decisions unilaterally without consulting others, often based on their own authority and judgment.

Immediate Crisis

A sudden and urgent situation requiring quick action to prevent or minimize major damage or disaster.

Delegate

To assign responsibility or authority to another individual, typically to lighten one's own workload or to entrust tasks to more specialized personnel.