Question: An individual has two employment opportunities involving the same work conditions but different incomes. Job 1 yields Y1 = 50, Y2 = 30. Job 2

An individual has two employment opportunities involving the same work conditions but different incomes. Job 1 yields Y1 = 50, Y2 = 30. Job 2 yields Y1 = 40, Y2 =40. Given that markets are perfect and bonds yield 5%, which should be selected?

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