Pat Has Just Graduated from College and Has Two Job

Multiple Choice

Pat has just graduated from college and has two job offers. One pays $45,000 and requires that Pat supervise employees doing construction work on a busy highway. The other is an office job that pays $40,000. Chris has received the same offers from the same firms. Pat values the added safety of the office job at $6,000 per year, and Chris values the added safety of the office job at $3,000 per year. Suppose that the agency that regulates highway safety requires that the highway construction firm provide additional safety precautions. After the changes, Chris places no additional value on working at the office, and Pat values the added safety of the office job by $2,000 per year. If the safety precautions cost the firm $3,000 per year and the highway construction firm reduces salaries by $3,000 to $42,000, then:

A) Pat will prefer the office job, and Chris will be indifferent between the two jobs.
B) both will prefer the highway job.
C) both will prefer the office job.
D) Chris will prefer the highway job, and Pat will be indifferent between the two jobs.