Compare and Contrast the Following Scenario in Relation to Risk-Sensitivity

Essay

Compare and contrast the following scenario in relation to risk-sensitivity, being risk-prone or risk-averse: Two people are searching for jobs. Person A has been out of work for 8 months and is on unemployment, but it's about to expire. She is offered a job that pays slightly higher than her unemployment. Person B has a current job that pays a good wage but she is looking for a new job because she is ready for a career change. She also applied for the same job as Person A and is also offered a position. The job pays less than her current salary. Based on what you have learned in this chapter, what decision will each person make, and why?