At Age 40,Joe Is Considering Quitting His Job and Going

question 23

Multiple Choice

At age 40,Joe is considering quitting his job and going back for a college degree.He needs two more years full-time.Tuition is $10,000 per year.He earns $30,000 per year.A college degree would raise his annual income by $10,000 per year.He will retire at age 70.From an investment standpoint,Joe will go back full-time if

• A) 10,000 × = 40,000 ×
• B) 10,000/r > 10,000 ×
• C) 10,000 × > 40,000 ×
• D) 10,000 × > 40,000 ×

---

Definitions:

Consumer Choice Behavior

Refers to the process and factors influencing the decision-making of individuals when selecting among different products or services.

Matching Law

Matching Law is a principle in psychology that states individuals allocate their responses in direct proportion to the reinforcement received from those responses.

Momentary Maximization

The tendency of an organism to choose an option that provides immediate benefits, even if a different choice could yield a higher cumulative benefit over time.

Maximizing Law

A principle suggesting that individuals behave in ways that they believe will maximize their rewards and minimize their losses.