Only answer to b) is needed. The rest is here for your reference. I will report plagiarism and spam, thank you.

You have a job in your hometown that pays $x. You could move to bigger city where there are more job opportunities, but you don't know if it will definitely result in a higher paying job. You have looked at jobs in your field and figure you have an 80% chance of finding a job that pays $y > $x, but a 20% chance of being unemployed and having no wage. a. What is your expected utility from moving (for a general utility fn U(c)? b. What is your expected utility from moving if U(c) c1/2? What if instead of zero wage in the 20% chance outcome, you'd get some unemployment benefit w? Would you be more or less likely to move? How would you relate this to an argument for/against universal basic income? = You have a job in your hometown that pays $x. You could move to bigger city where there are more job opportunities, but you don't know if it will definitely result in a higher paying job. You have looked at jobs in your field and figure you have an 80% chance of finding a job that pays $y > $x, but a 20% chance of being unemployed and having no wage. a. What is your expected utility from moving (for a general utility fn U(c)? b. What is your expected utility from moving if U(c) c1/2? What if instead of zero wage in the 20% chance outcome, you'd get some unemployment benefit w? Would you be more or less likely to move? How would you relate this to an argument for/against universal basic income? =