If an Individual's Primary Objective Is to Maximize His or Her

question 248

Multiple Choice

If an individual's primary objective is to maximize his or her salary, then which action would NOT be considered a rational decision?

• A) accepting a boring job that pays $60,000 per year over a fun job that pays $40,000 per year
• B) accepting a fun job that pays $70,000 per year over a boring job that pays $60,000 per year
• C) accepting a boring job that pays $95,000 per year over a fun job that pays $90,000 per year
• D) accepting a fun job that pays $40,000 per year over a boring job that pays $60,000 per year

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Definitions:

Inadequate Coverage

Refers to insurance policies that do not provide sufficient protection against losses.

Complex Information

Information that is intricate due to its structure, content, or presentation, often requiring specialized knowledge to understand.

Adverse Selection

A situation in insurance and markets where parties on one side of the transaction have more information than the other side, leading to a selection of risks that are more unfavorable.

Unhealthy People

Individuals who experience a lower state of health, often due to chronic diseases, lifestyle choices, or environmental factors.