Nick has two job offers, one as a financial planner and one as an economist for a regional bank. The income that Nick would expect to earn as a financial planner depends how effective he is in getting clients
He estimates that he would receive either $80,000 and a utility of 75, with a probability of .50, or he would earn $30,000 and a utility of 35, with a probability of .50. The economist job would pay $45,000 per year and has a utility of 55. To maximize his expected utility, which job should Nick take? A) Nick is indifferent between the two jobs.
B) Nick is better off if he takes the economist job.
C) Nick is better off if he takes the job of financial planner.
D) Nick should look around for another job.
A
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If the federal government has a budget deficit, then it is definitely the case that
A) the tax revenue exceed government outlays. B) the tax revenue and government outlays are equal. C) the tax revenue is falling and government outlays are rising. D) government outlays exceed tax revenue. E) the tax revenue is rising and government outlays are falling.
One should ignore the degree of income inequality _____
a. when one considers the design of redistribution programs b. when one only cares about improving the lot of the worst off in society c. when considering whether or not to transfer resources from the rich to the poor d. when considering progressive taxation
In determining the exchange rate between the Canadian dollar and British pound, if Canadian income increases, then
a. the demand for pounds will increase, leading to depreciation of the Canadian dollar, assuming exchange rates are allowed to float b. the demand for pounds will increase, leading to depreciation of the Canadian dollar, assuming exchange rates are fixed c. the demand for pounds will increase, leading to appreciation of the Canadian dollar, assuming exchange rates are allowed to float d. the demand for pounds will increase, leading to appreciation of the Canadian dollar, assuming exchange rates are fixed e. the supply of pounds will shift to the left, causing appreciation of the Canadian dollar, assuming exchange rates are fixed
GDP will grow faster than real GDP if
A. deflation occurs in an economy.
B. imports exceed exports in an economy.
C. inflation occurs in an economy.
D. unemployment occurs in an economy.