Author Question: Bobby is offered two fulltime jobs. In the first job, as a salesperson, he has a 50 percent chance ... (Read 42 times)

maegan_martin · **on:** Jun 29, 2018

Bobby is offered two fulltime jobs. In the first job, as a salesperson, he has a 50 percent chance to make 2,000 a month and a 50 percent chance to make 10,000 a month. The second job, as a construction worker, pays 4,500 a month with certainty.

Bobby's utility of wealth curve is shown in the figure above. Bobby will take the ________ job because his expected ________ from this job is greater. A) first; utility
B) second; utility
C) second; income
D) first; income

Question 2

Which of the following does NOT help organize trade?

A) property rights
B) markets
C) the production possibilities frontier
D) None of the above because all these answers given help organize trade.