Amanda Recently Graduated from College,and She Has a Job Offer

question 6

Multiple Choice

Amanda recently graduated from college,and she has a job offer with uncertain income.There is a 70% probability that she will make $10,000 and a 30% probability that she will make $70,000.Suppose Amanda is offered another job with a certain income.All else equal,if she has a constant marginal utility of income,she will accept the second job offer only if it pays more than:

• A)$40,000.
• B)$28,000.
• C)$10,000.
• D)$21,000.

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Definitions:

Poverty Rate

The percentage of the population that lives below the national poverty line, indicating the proportion of the population living in poverty.

Hispanics

People from, or descendants of, Spanish-speaking populations, primarily found in Latin America and the United States.

Children Under 18

Individuals who are in the age group that legally categorizes them as minors in most jurisdictions.

Poverty Rate

The percentage of the population that lives below the nation's official poverty line, indicating the proportion of people living in poverty.