Taylor is interviewing for a job. She decides to wear a suit to the interview in an effort to make a good first impression, even though she would be more comfortable in a simpler outfit of slacks and a blouse. Economic theory:
A)cannot explain why someone would choose an outfit that provides less utility than another.
B)would suggest that making a good impression will bring Taylor more utility than wearing the more comfortable outfit and making a bad impression.
C)would suggest that Taylor values what the interviewer thinks and will derive negative utility if the interviewer is not impressed.
D)would say that Taylor is behaving irrationally by choosing to wear a suit instead of the more comfortable outfit.

Question

Quizplus · Accepted Answer

Economic theory suggests that individuals make decisions based on maximizing their overall utility. Taylor believes that wearing a suit will make a better impression, which she values more than the comfort of wearing slacks and a blouse. Therefore, the utility gained from making a good impression outweighs the discomfort of wearing a suit.

Taylor Is Interviewing for a Job