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
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When checks are exchanged between banks, the Fed oversees the banks to ensure the appropriate funds have been transferred. This is known as
A) check kiting. B) check floating. C) check balancing. D) check clearing.
Refer to Table 9-12. Prior to trade, what was the opportunity cost to produce 1 belt in Morocco?
A) 1/2 of a sword B) 1 sword C) 1.5 swords D) 2 swords