You Are Shopping at the Local Mall with an $80

question 148

Multiple Choice

You are shopping at the local mall with an $80 gift card that expires tomorrow. Only three items catch your attention: a bottle of perfume, a remote control helicopter, and an "Amazing Ab Belt." You would be willing to give up $60 for the perfume, $70 for the belt, and $80 for the helicopter. Knowing this, you decide to purchase the helicopter. The opportunity cost of the helicopter is:

• A) $130, the combined value of the alternatives forgone.
• B) $80, the amount spent using the gift card.
• C) $70, the value of the ab belt.
• D) $60, the value of the perfume.

Understand the basic concepts and significance of Leader-Member Exchange (LMX) theory.

Describe the organizational benefits of high-quality leader-member exchanges.

Recognize the distinction between in-group and out-group relationships within LMX theory.

Explain the relationship between LMX and employee empowerment.

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Definitions:

Task Difficulty

The level of challenge presented by a task, which can affect an individual's performance and motivation.

Weiner

Refers to Bernard Weiner, an American psychologist known for his attribution theory in social psychology.

Expended Effort

The amount of energy, time, or resources utilized to achieve a result or complete a task.

Self-serving Bias

The common tendency to attribute our successes to internal factors while attributing failures to external ones.