Refer to the information provided in Figure 17.2 below to answer the question(s) that follow. 
Figure 17.2 Refer to Figure 17.2. Fiona has two job offers when she graduates from college. Fiona views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $60,000. The second offer is at a fixed salary of $20,000 plus a possible bonus of $80,000. Fiona believes that she has a 50-50 chance of earning the bonus. If Fiona takes the offer that maximizes her expected utility and she is risk-neutral, then
A. she will take the first offer.
B. she will take the second offer.
C. she is indifferent between the offers-both yield the same expected utility.
D. Indeterminate from the given information-we cannot say what she will do.
Answer: C
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The conservative theory of poverty blames _____ for welfare dependency.
A. the poor B. the government C. both the poor and the government D. neither the poor nor the government
Refer to the graph shown. The amount of a tax sufficient to reduce quantity supplied to the level that individuals would have supplied had they included the cost in their decision on third parties is:
A. $1.70. B. $1.00. C. $2.50. D. $0.80.
The value of the WhatsApp Messenger to an individual user increased as more of his friends and acquaintances started using it. This is an example of a(n) ________
A) moral hazard B) adverse selection C) network externality D) negative externality
Generally, negative externalities result in
A. too much of a good being produced. B. the socially optimal output of a good being produced. C. too little of a good being produced. D. either a or c E. any of the above