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

question 137

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 a CEO's time is quite high because they have an abundance of time to spend on housework.
• B) The opportunity cost of a CEO's time is quite low because they have a scarcity of time to spend on housework.
• C) The opportunity cost of a CEO's time is quite low because they have an abundance of time to spend on housework.
• D) The opportunity cost of a 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.

Understand the concepts of Average Propensity to Save (APS), Average Propensity to Consume (APC), and Marginal Propensity to Save (MPS).

Determine the Marginal Propensity to Consume (MPC) from given consumption data.

Differentiate between autonomous and induced consumption components.

Understand the concept of retained earnings, including restrictions and adjustments.

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Definitions:

Cannon-Bard Theory

A theory in psychology proposing that emotional feelings and physiological reactions to stimuli occur simultaneously and independently.

James-Lange Theory

A psychological theory suggesting that emotions result from physiological reactions to external events before the emotional experience occurs.

Schachter-Singer Theory

A theory of emotion that states emotions are determined by physiological arousal and the cognitive interpretation of that arousal.

Conscious Evaluative Reaction

A deliberate and aware assessment of a situation or event, often involving judgment on value, quality, or significance.