Lucy works as a college instructor for a fixed annual salary of $30,000. She is considering quitting this job and becoming a real estate broker
Lucy believes that as a realtor she has a 40 percent chance to make $60,000 per year and a 60 percent chance to make $25,000 a year. The figure above shows Lucy's total utility of wealth curve (U). Lucy will decide to ________ and she will definitely make this choice because it gives her a greater expected ________. A) keep her current job; income
B) keep her current job; utility
C) quit her job and become a realtor; utility
D) quit her job and become a realtor; income
C
You might also like to view...
Natural resources are
a. not considered scarce because no one pays for them b. only desired for use in producing other goods c. included in the category of resources called gifts of nature d. available in unlimited quantities e. not considered scarce because they are not produced by society
Trade allows each country to take advantage of lower ___________ costs in the other country.
a. replacement b. opportunity c. marginal d. retail
Which of the following is a correct characterization of socialism?
A. Tradition answers the basic economic questions. B. Markets are used exclusively to answer the basic economic questions. C. Central planning is seldom used to answer the basic economic questions. D. Government ownership of many resources and centralized decision-making answers the basic economic questions.
Institutionally-focused economists argue:
A. the equation of exchange is incorrect. B. the equation of exchange should be read from left to right. C. the equation of exchange should be read from right to left. D. both the quantity theory and the equation of exchange are incorrect.