A Laid-Off Autoworker Does Not Immediately Seek Employment in a Rapidly

question 90

Multiple Choice

A laid-off autoworker does not immediately seek employment in a rapidly growing computer industry because:

• A) he is irrational,not considering the benefits of searching for a new job.
• B) changing a career is a costly decision.
• C) being unemployed is always the best decision for a person after a layoff.
• D) there are benefits to being rationally ignorant.

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Definitions:

Interest Rate

The proportion of a total amount of money that is levied for borrowing it, usually stated on a yearly basis.

Investment

The allocation of resources, usually money, in assets with the expectation of earning a future return.

Face Value

The nominal value printed on a financial instrument like a bond or currency note, representing its legal value.

Compound Interest

Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.