Comparing a lottery where a $1 ticket purchases a chance to win $1 million with another lottery in which a $5,000 ticket purchases a chance to win $5 billion, we notice many people would participate in the first but not the second, even though the odds of winning both lotteries are the same. We can perhaps best explain this outcome by:
A. lower value at risk for the lottery paying $1 million.
B. higher expected value for the lottery paying $5 billion.
C. higher expected value for the lottery paying $1 million.
D. higher value at risk for the lottery paying $1 million.
Answer: A
You might also like to view...
A monopolist’s profit per unit is shown by the difference between price and average cost per unit.
Answer the following statement true (T) or false (F)
An increase in quantity demanded is represented by
a. a shift outward of the entire demand curve. b. a shift inward of the entire demand curve. c. a movement along the demand curve in a southeasterly direction in response to a decline in the good's price. d. a movement along the demand curve in a northwesterly direction in response to a decline in the good's price.
One market that fits the characteristics of monopolistic competition is
A. women’s clothing. B. wheat farming. C. television networks. D. electric power generation.
A stock person who is laid off by a department store because retail sales across the country have decreased is _______ unemployed.
a. cyclically b. chronically c. structurally d. frictionally