Hudson Has Two Job Offers When He Graduates from College

question 100

Multiple Choice

Hudson has two job offers when he graduates from college. Hudson views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $45,000. The second offer is at a fixed salary of $25,000 plus a possible bonus of $40,000. Hudson believes that he has a 50-50 chance of earning the bonus. If Hudson takes the offer that maximizes his expected utility and he is risk-loving, then

• A) he will take the first offer.
• B) he will take the second offer.
• C) he is indifferent between the offers-both yield the same expected utility.
• D) Indeterminate from the given information-we cannot say what he will do.

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Definitions:

Global Village

A term popularized by Marshall McLuhan, describing the world as a connected community facilitated by electronic communication.

Marshall McLuhan

A pioneering Canadian scholar in the field of media theory, best known for coining the expressions "the medium is the message" and "global village."

Media Technology

Refers to the tools and platforms used for creating, disseminating, and consuming content, impacting how information is shared and perceived.

Social Movements

Collective, organized campaigns aimed at achieving a particular social, political, economic, or cultural goal, often outside of institutionalized political channels.