Which of the following shows alternate paths for decision making?

What is one reason private solutions to externalities do NOT always work?

a) Government participation in such solutions complicates the process. b) Some parties benefit from externalities. c) Interested parties incur costs in the bargaining process. d) The actual costs and benefits of the problem are difficult to see.

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.