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State University Wishes to Hire Another Labor Economist

Question 4

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State University wishes to hire another labor economist.It targets two economists, Amy and Beth, who are both currently working at a university in another state and who are both earning $68,000 per year.Amy is a 32 year-old, single assistant professor who lived in India and Germany as a child and who will come up for tenure in 2 years.Beth is a 50 year-old, married full professor with tenure who has worked for a single university for 22 years.The offer to either economist is for $75,000 per year and the ability to apply for tenure in 3 years.Given the information above, Amy is more likely to accept a job offer from State University than is Beth for several reasons.Which is the least likely reason why?


A) Because Amy is younger than Beth.
B) Because Amy is not yet tenured.
C) Because Amy faces lower moving costs.
D) Because Amy is single while Beth is married.
E) Because both women stand to earn $7,000 more per year by switching jobs.

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