There are two alternative plans to evacuate a village of 900 people in the path of a deadly hurricane. According to the experiment by Amos Tversky and Danial Kahenman, which program will the majority of participants choose?
If Program A is adopted, there is a 33 percent chance of evacuating all 900 people and a 66 percent possibility of evacuating no one on time.
If Program B is adopted, 300 people will be evacuated.
a. Program A, because it sounds like it has a greater chance of success.
b. Program B, because it sounds less risky.
c. Either program, because they have equal predicted outcomes
d. Neither program, because neither solves the problem
b. Program B, because it sounds less risky.
You might also like to view...
Which of the following are not counted as household income in determining whether or not a household is below the official poverty line?
a. In-kind transfers such as food stamps, Medicaid, and housing subsidies b. Cash transfer payments made when a worker becomes unemployed c. Cash transfer payments such as from social security d. Medicare payments
Suppose real GDP in a country called Gambria is increasing by 5% annually and the population of Gambria is increasing by 2% annually. Then, :
A. Gambria's population must be declining. B. Gambria will have to export more than it imports. C. the general level of prices in Gambria must be increasing. D. Gambria's per capita real GDP will be increasing.
Which of the following institutions is a central bank?
a. the Bank of Japan b. the Bank of England c. the Federal Reserve System d. All of the above are correct.
According to Pigou, the best way to deal with a negative externality is to
A. tax it. B. allow both parties to negotiate. C. assign liability to the party with the highest cost of prevention. D. assign liability to the party with the lowest cost of prevention.