Suppose That Christine Owns Her Own CPA Firm

question 647

Multiple Choice

Suppose that Christine owns her own CPA firm. She uses only two inputs in her business: her hours worked (labor) and a computer (capital) . In the short run, Christine most likely considers

• A)both labor and capital to be fixed.
• B)both labor and capital to be variable.
• C)capital to be variable and labor to be fixed.
• D)labor to be variable and capital to be fixed.

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Definitions:

Personal Gain

Pursuing actions or decisions primarily for self-benefit or personal advantage.

Cognitive Dissonance Theory

A concept in social psychology that describes the discomfort felt by an individual who holds contradictory beliefs, ideas, or values.

Attitudes

Psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.

Conflict

A situation or internal state of discord arising from opposing or incompatible forces, desires, or interests.