Scenario 19-1 Ferris B., a Student at a Community College, Is Considering

question 197

Multiple Choice

Scenario 19-1
Ferris B., a student at a community college, is considering what he should do for summer employment. Two recruiters show up at his school in search of summer workers. Recruiter A is looking for lifeguards to patrol the beach at an exclusive island resort in the Caribbean. Recruiter B is looking for workers to staff positions at a summer youth camp.
-Refer to Scenario 19-1. Ferris is carefully considering the options that each recruiter presents. On the basis of knowledge obtained in his economics class, Ferris concludes that

• A)wages are unlikely to be affected by job requirements.
• B)since the lifeguard job would expose him to a threat of skin cancer, the wage will be low.
• C)if the lifeguard job has a requirement for special training or certification, the wage offer will be higher than otherwise.
• D)if the lifeguard job also requires a willingness to clean public restrooms, the wage offer will be lower than otherwise.

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Definitions:

Diversification

An investment strategy that reduces risk by allocating investments among various financial instruments, industries, or other categories.

Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases.

Expected Value

A calculation in statistics that quantifies the average outcome of a random event over a large number of occurrences.

Mean

The average value of a set of numbers, calculated by dividing the sum of all values by the number of values.