Mark Has Two Job Offers When He Graduates from College

question 20

Multiple Choice

Mark has two job offers when he graduates from college. Mark views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $40,000. The second offer is at a fixed salary of $20,000 plus a possible bonus of $40,000. Mark believes that he has a 50-50 chance of earning the bonus. If Mark takes the offer that maximizes his expected utility and is risk-loving, which job offer will he choose?

• A) Mark will take the first offer.
• B) Mark will take the second offer.
• C) Mark is indifferent between the offers-both yield the same expected utility.
• D) Indeterminate from the given information.

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Definitions:

Interpersonal Skills

Abilities used to communicate and interact with others effectively, including listening, communication, and problem-solving skills.

Communicating

The act of exchanging information or expressing ideas and feelings verbally or nonverbally.

Social Norms

Shared standards of behavior that are considered acceptable within a group or society.

Organization Awareness

The extent to which an individual understands the dynamics and characteristics of the organization they work in, including its culture, politics, and social networks.