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 high 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.

Question

Quizplus · Accepted Answer

Economists would find it surprising if the CEO of a large company does his or her own housework because the opportunity cost of the CEO's time is quite high due to the scarcity of time they have to spend on housework. CEOs of large companies typically have very demanding schedules and their time is extremely valuable. When they spend time on non-work-related tasks such as housework, they are not spending that time on their primary job responsibilities, which could include making high-level strategic decisions, networking, and leading the company, all of which have the potential to generate significant value for the company.
This is because the time they spend on housework could otherwise be used in more productive ways that are more aligned with their role and the high compensation they receive. It is often more cost-effective for CEOs to hire someone to do their housework, allowing them to focus on their core responsibilities that presumably have a much higher hourly value to the company.

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