What type of risk behavior does the person exhibit who is willing to pay $5 for the chance to bet $60 on a game where 20% of the time the bet returns $100, and 80% of the time returns $50? Explain
What will be an ideal response?
This person is risk preferring. The bet is fair. The expected wealth of the person is the same whether or not the bet is made. However, this person is willing to pay $5 to make this fair bet.
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What is the difference between club goods and common pool resources? Cite one example of each type of good
What will be an ideal response?
Refer to Figure 4-3. At the price P2, consumers are willing to buy the Q2 pounds of granola. Is this an economically efficient quantity?
A) Yes, because the price P2 shows what consumers are willing to pay for the product. B) No, the marginal benefit of the last unit (Q2 ) exceeds the marginal cost of that last unit. C) Yes, otherwise consumers would not buy Q2 units. D) No, the marginal cost of the last unit (Q2 ) exceeds the marginal benefit of the last unit.
Slope is measured as rise/run
a. True b. False Indicate whether the statement is true or false
Congress initially intended for the Medicaid program to provide basic safety net coverage for certain vulnerable populations, including all the following but one.
a. Disabled individuals less than 65 b. Working age adults without dependents c. Single, pregnant women with or without dependents d. Single men with dependents e. Children in low-income households