Amanda Recently Graduated from College,and She Has a Job Offer

question 6

Multiple Choice

Amanda recently graduated from college,and she has a job offer with uncertain income.There is a 70% probability that she will make $10,000 and a 30% probability that she will make $70,000.Suppose Amanda is offered another job with a certain income.All else equal,if she has a constant marginal utility of income,she will accept the second job offer only if it pays more than:

• A)$40,000.
• B)$28,000.
• C)$10,000.
• D)$21,000.

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Definitions:

Immediate Gratification

The desire to experience pleasure or fulfillment without delay or deferment, often prioritized over long-term gain.

Rational Means

Methods or actions that are based on logic or reasoning rather than emotion or desire.

Psychosexual Stages

Five stages of personality development proposed by Freud and tied to the sexual development of the child.

Erogenous Zones

Erogenous zones are areas of the body that elicit sexual arousal when touched or stimulated.