Why Would Economists Find It Surprising If the CEO of a Large

question 30

Multiple Choice

Why would economists find it surprising if the CEO of a large company does his or her own housework?

• A) The opportunity cost of CEO's time is quite high because they have an abundance of time to spend on housework.
• B) The opportunity cost of CEO's time is quite low because they have a scarcity of time to spend on housework.
• C) The opportunity cost of CEO's time is quite low because they have an abundance of time to spend on housework.
• D) The opportunity cost of CEO's time is quite high because they have a scarcity of time to spend on housework.
• E) The opportunity cost of a CEO's time is equal to that of everyone else that works at the same company.

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Definitions:

Capital Gains

The profit earned from the sale of an asset, such as stocks or real estate, where the selling price exceeds the original purchase price.

Marginal Tax Rates

The rate at which the next dollar of taxable income will be taxed, according to the income tax brackets set by the government.

Capital Gains

The profit from the sale of an asset or investment, which is the difference between the sale price and the purchase price.

Marginal Tax Rates

The fraction of your income subjected to taxation, based on the qualifying tax brackets.