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

question 78

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% of jobs offering $30,000 per year,50% offering $40,000 per year and 25% 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.
Moe has just received a job offer that pays $40,000 per year.Moe should

• A)reject the offer and continue to look.
• B)accept the offer if he is risk averse or risk neutral;otherwise continue searching.
• C)accept the offer only if he is risk averse.
• D)accept the offer regardless of his preference for risk.

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Definitions:

Psychological Theories

Theoretical perspectives and explanations for human behavior and mental processes developed through psychological research.

Sigmund Freud

The founder of psychoanalysis, known for his theories of the unconscious mind, mechanisms of repression, and the importance of childhood experiences.

Frederick Taylor

An American engineer and management consultant who is known as the father of scientific management.

Employee Motivation

The level of commitment, drive, and energy that a company's workers bring to their roles each day.