-Lucy Works as a College Instructor for a Fixed Annual

question 159

Multiple Choice

-Lucy works as a college instructor for a fixed annual salary of $30,000. She is considering quitting this job and becoming a real estate broker. Lucy believes that as a realtor she has a 40 percent chance to make $60,000 per year and a 60 percent chance to make $25,000 a year. The figure above shows Lucy's total utility of wealth curve (U) . Lucy will decide to ________ and she will definitely make this choice because it gives her a greater expected ________.

• A) keep her current job; income
• B) keep her current job; utility
• C) quit her job and become a realtor; utility
• D) quit her job and become a realtor; income

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Definitions:

Secondary Labour Market

A segment of the labor market characterized by low-paying, insecure jobs, and often with limited opportunities for advancement.

Informal Network

A social network formed based on personal relationships and social connections, rather than formal contracts or organizational structures.

Codetermination Cooperatives

A form of corporate governance that involves the joint decision-making by workers and management in the operation of a business, typically found in cooperatives.

Internal Labour Markets

Are social mechanisms for controlling pay rates, hiring, and promotions within corporations while reducing competition between a firm’s workers and external workers.