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 double her money ($80,000) but if they lose she loses her entire salary ($0). Sue's utility if she does not take the bet is ________ and her expected utility from the bet is ________.
A. 80; 20
B. 40; 40
C. 40; 0
D. 40; 80
Answer: B
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
change in quantity demanded
What will be an ideal response?
Between 1968 and 2008 the poorest 60% of the population experienced a _______ in its percentage share of the nation's wealth.
A. substantial decrease B. small decrease C. small increase D. substantial increase
If every country specializes in what it produces best and then trades, more will be produced than if each country tries to produce everything for its own needs.
Answer the following statement true (T) or false (F)