Sophia Is an Architect and She Is Trying to Decide

question 193

Multiple Choice

Sophia is an architect and she is trying to decide whether to hire Jacob, a draftsman, to assist with her work. Sophia could hire Jacob at $20 per hour but it would take him three times as long to complete a task as it takes Sophia. Sophia is able to earn $90 per hour and has more architectural jobs than she is able to handle. Which of the following is true?

• A) Sophia should not hire Jacob because it would be faster for her to do the work herself.
• B) Sophia should do the drafting work herself because she has the lower opportunity cost.
• C) Jacob should be hired at the $20 per hour wage rate.
• D) Jacob should be hired, but only if he is paid more than $30 per hour.

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Definitions:

Above-Average Effect

The tendency for individuals to overestimate their abilities or qualities, particularly in comparison to others, also known as the superiority bias.

Self-Verification

The desire and tendency of individuals to seek confirmation of their self-concept from the social environment.

Terror Management Theory

A psychological concept suggesting that humans have anxiety over their mortality, influencing their beliefs and behaviors to manage this fear.

Fear of Death

A pervasive anxiety or dread related to the contemplation or anticipation of dying or the unknown aspects of death.