Suppose That the Salary Range for Recent College Graduates with a Bachelor's

question 82

Multiple Choice

Suppose that the salary range for recent college graduates with a bachelor's degree in economics is $30,000 to $50,000, with 25 percent of jobs offering $30,000 per year, 50 percent offering $40,000 per year and 25 percent offering $50,000 per year and that in all other respects, the jobs are equally satisfying. Assume that in this market, a job offer remains open for only a short time so that continuing to search requires an applicant to reject any current job offer. If this scenario describes job searches in general, the segment of the population that is most risk-averse will tend to earn:

• A)average salaries.
• B)below-average salaries.
• C)above-average salaries.
• D)stable salaries.

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Definitions:

Income from Operations

The earnings generated from a business's core activities, excluding revenues and expenses from non-operational activities.

Perpetual Inventory System

An accounting method that continuously updates inventory records for each purchase and sale of inventory.

Cost of Merchandise Sold

The total cost incurred to purchase or manufacture the goods sold during a specific period.

FOB Shipping Point

A term used in shipping indicating that the buyer assumes responsibility for the goods and the cost of transportation once the goods leave the seller’s premises.