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.

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Definitions:

Marginal Utility

The additional satisfaction or benefit gained from consuming one more unit of a good or service.

Indifference Curve

A graphical representation showing combinations of goods among which a consumer is indifferent, indicating the same level of utility or satisfaction.

Budget Line

The graphical depiction of the trade-off between two goods, demonstrating the combinations that a consumer can afford based on their income and the goods' prices.

Marginal Utility

The change in total satisfaction received from consuming one additional unit of a good or service.