Suppose Your Utility Function for Income That Takes the Form

question 90

Multiple Choice

Suppose your utility function for income that takes the form U(I) = , and you are considering a self-employment opportunity that may pay $10,000 per year or $40,000 per year with equal probabilities. What certain income would provide the same satisfaction as the expected utility from the self-employed position?

• A) $15,000
• B) $22,500
• C) $25,000
• D) $27,500

---

Definitions:

Questionnaires

Structured sets of questions used for gathering information from respondents, commonly used in research and feedback collection.

Functional Job Analysis

A method of job analysis that describes a job in terms of the tasks performed and the competencies required to perform those tasks.

Job Analysis Method

A systematic process used to identify the duties, responsibilities, and requirements of a specific job.

Organizations

Groups of people structured systematically to achieve specific goals or perform specific tasks.