Refer to the data provided in Table 17.2 below to answer the following question(s). The table shows the relationship between income and utility for Sue.Table 17.2 IncomeTotal Utility $00$20,00020$40,00040$60,00060$80,00080Refer to Table 17.2. Sue earns $40,000 annually. She has the opportunity to bet her entire salary on the upcoming super bowl. If Sue takes the bet, she will pick the Patriots. She believes that the Patriots have a 50-50 chance of winning the game. If the Patriots win, Sue will win $81,000 but if they lose she loses her entire salary ($0). Will Sue take the bet?
A. yes
B. no
C. maybe
D. indeterminate from the given information
Answer: A
You might also like to view...
Compare and contrast the arguments favoring active versus passive policy making
What will be an ideal response?
If you pay $35 for a sticker that entitles you to park on campus for 35 weeks of the academic year, the marginal dollar cost to you of parking your car on campus on any given weekday will be
A) $35. B) $1. C) $.20. D) zero. E) negative.
The economy is considered to be at full employment when
A) the frictional unemployment rate is zero. B) the structural unemployment rate is zero. C) the cyclical unemployment rate is zero. D) the unemployment rate is zero.
Political candidates often hold fundraisers by charging "per plate" for dinner. Wendy purchased four tickets to a $1,000 per plate dinner for a local city council candidate. Does this transaction benefit both parties?
A) No, political candidates should never be allowed to overcharge for a fundraising dinner as that limits the number of people who can afford to attend. B) Yes, it was a voluntary exchange that benefited both parties. C) No, Wendy paid too much for four dinners. D) Yes, but only if the dinners served actually cost $1,000 each.