Economics 9708 · AS & A Level · Utility and rational consumer behaviour

Utility and rational consumer behaviour — practice question

A worker records the yearly monetary amounts she assigns to the benefits and drawbacks of a job: income $750; dangerous working conditions $500; long working hours $250; high prestige $200; cost of providing own uniform $150; opportunity for travel $100; short holidays $50. What conclusion can be drawn from the table?

  • AShe values the pecuniary advantages more highly than the non-pecuniary advantages.
  • BShe would take the job even if it had none of the non-pecuniary advantages.
  • CThe job has no pecuniary disadvantages.
  • DThe non-pecuniary advantages outweigh the non-pecuniary disadvantages.

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