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:

CSR Activity

Corporate social responsibility activities aimed at enhancing society and the environment beyond the firm's immediate financial interests or legal requirements.

Corporate Performance

A measure of a company's efficiency, productivity, and profitability, typically evaluated through financial metrics and operational indicators.

Agency Problem

A conflict of interest arising between principals (such as shareholders) and agents (such as company executives) due to differing goals.

Conflict Of Interest

A conflict of interest arises when a person or entity has competing interests or loyalties that could potentially influence the objectivity of their decisions.