Suppose that the salary range for recent college graduates with a bachelor's degree in economics is $30,000 to $50,000,with 25% of jobs offering $30,000 per year,50% offering $40,000 per year and 25% offering $50,000 per year and that in all other respects,the jobs are equally satisfying.Assume that in this market,a job offer remains open for only a short time so that continuing to search requires an applicant to reject any current job offer.
Who will accept an offer of $30,000?

Question

Quizplus · Accepted Answer

Graduates who are risk-averse will accept the $30,000 offer because they prefer the certainty of a job over the uncertainty of continuing to search for a potentially higher-paying job.

Suppose That the Salary Range for Recent College Graduates with a Bachelor's