Suppose Matt and Gabe Must Both Choose Between Two Jobs

Multiple Choice

Suppose Matt and Gabe must both choose between two jobs, a safe job that pays $250 per week and a risky job that pays $300 per week. The value of safety to each is $75 per week. Having more income than the other is worth $75 per week to each, and having less income than the other means a $75-per-week reduction in satisfaction. Having the same income as the other means no change in satisfaction. The payoff matrix below summarizes this situation. When Matt chooses the safe job, Gabe will get more satisfaction by choosing the ______ job, and when Matt chooses the risky job, Gabe will get more satisfaction by choosing the ______ job.

A) risky; risky
B) risky; safe
C) safe; risky
D) safe; safe