Suppose Marion and Gab Must Both Choose Between Two Jobs,a

question 71

Multiple Choice

Suppose Marion and Gab must both choose between two jobs,a safe job that pays $250/week and a risky job that pays $300/week.The value of safety to each is $75/week.Each also values having a higher income than the other at $75/week.Having the same job (income) as the other means no change in satisfaction.The following payoff matrix shows the income (satisfaction) each would get based on the other decision. $\begin{array}{c}\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Marion }\\\text { Gab }\begin{array}{|l|l|l|}\hline& \text { Safe Job @\$250 } & \text { Risky Job @ \$300 } \\\hline \text { Safe Job @\$250 } & \begin{array}{l}\text { Gab: \$325 } \\\text { Marion: \$325 }\end{array} & \begin{array}{l}\text { Gab: \$325 } \\\text { Marion: \$375 }\end{array} \\\hline \text { Risky Job @ \$300 } & \begin{array}{l}\text { Gab: \$375 } \\\text { Marion: \$325 }\end{array} & \begin{array}{l}\text { Gab: \$300 } \\\text { Marion: \$300 }\end{array} \\\hline\end{array}\end{array}$
When Marion chooses the safe job,Gab will get more satisfaction by choosing the ____ and when Marion chooses the risky job,Gab will get more satisfaction by choosing the _____.

• A) risky job;risky job
• B) risky job;safe job
• C) safe job;risky job
• D) safe job;safe job

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Definitions:

Withholding Allowance

A claim made by an employee on a W-4 form to reduce the amount of income tax withheld from their paycheck.

Taxable Income

The portion of an individual's or corporation's income that is subject to taxation by the government, after allowances, exemptions, and deductions.

Withholding Allowance

Withholding allowance refers to an exemption that reduces how much income tax an employer deducts from an employee's paycheck.

Taxable Income

The portion of an individual's or entity's income used to determine tax liability.