Question

Bucky and Satchel are offered identical jobs, each paying $80,000 per year. According to behavioral economics,

Multiple Choice

• they should feel equally good about the job offer.

• if the jobs will not change their income, they are more likely to switch jobs than remain with the status quo.

• if Bucky's current income is $60,000 per year, and Satchel's is $70,000 per year, we would expect Bucky to receive twice as much additional utility from taking the job as Satchel would.

• how each will feel about the job offer will depend on their current positions and incomes.

Answer 1

Answer to the question:

Option d: How each will feel about the job offer will depend on their current positions and income.

Explanation: Two people react differently or get different level of satisfaction on a offering of a job of $80000. This depends on the position and the salary of current job of them. Suppose, Bucky is unemployed, then on getting this job, he will be very much satisfied and will also be happy. But if Satche is currently working in some company where he's getting $70000, then on getting a new job of $80000 will not give satisfaction as much as Bucky.

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