The more risky future options or alternatives are a) the less rational people will necessarily be. b) the more future values must be discounted to obtain their present values. c) the greater their present values. d) the greater their net values in the future.
Q: Suppose that the expected exam scores from studying economics for 0, 1, 2, or 3 hours are 65, 80,…
A:
Q: The opportunity cost of a decision is the sum of all the foregone benefits that you'd receive from…
A: Every choice needs a trade-off because resources are limited. Opportunity cost arises when there is…
Q: What is Time Consistency? Select one: a. None of the above b. a situation in which an agent,…
A: Time consistency One of the most complex issues in economics is that of time consistency.It emerges…
Q: Amid growing concerns that a virus outbreak from Asia will turn to a global pandemic, Ivan the…
A: Given information Investor invests in 3 sectors with 3 strategies. Given pay off Virus…
Q: Which of the following is not included in a net worth statement?
A: Net worth = Assets - Liabilities Hence, an individual's net worth is the value of assets after…
Q: utilit
A: Utility function is an important concept which measures the preferences over a set of services and…
Q: Which of the following is correct about emergency planning? i. As events overwhelm an individual's…
A: Emergency planning is a situation in which a course of action is planned to minimize the loss or…
Q: Ebony Reigns owns a studio that would cost ¢ 120,000 to replace should it ever be destroyed by fire.…
A: Given information Ebony Reign Owns a studio Cost of replacement when fire destroys it=120000 25%…
Q: Discuss Deterministic Safety Factor-Based Methods
A: The deterministic sampling idea. If a non-periodic pattern is given and atiny low deterministic…
Q: Describe possible ethical issues about privacy as a result of business and government use of big…
A: Marr explains the use of big dàta through multiple studies. Although I want a lot of new ones màde…
Q: Time inconsistency refers to a situation where: Question 45 options: a we change our minds about…
A: 45) Time inconsistency refers to being inconsistent with the same decision, but when it is taken…
Q: The buyer of a piece of real estate is often given the option of buying down the loan. This option…
A: buyer of a piece of real estate is often given the option of buying down the loan. this option gives…
Q: Which of the following statements is true? Multiple Choice All of the statements are correct.…
A: Since the most preferred project is D- 0.5*60+0.5*60= 60
Q: The statement "risk requires compensation" implies that people: a. Do not take risk b. Only accept…
A:
Q: ) True or False: Speculators have got substantial influence on second-generation
A: Excessive borrowing of government or consistent deficit in the balance of payments leads to the…
Q: Discuss the Contingent Valuation Method
A: Contingent valuation method is a procedure for the valuation of benefit and cost analysis and…
Q: This factor contributes to the winner's curse a. your estimate of the value of the object was…
A: A winner's curse is a tendency of a bidder to win the bid in an auction. There are many bidders…
Q: Safety and risk are subjective concepts which depend on the following factors, except a. voluntary…
A: Safety and risks are subjective concepts because they are perceived differently by different people.…
Q: The statement "risk requires compensation" implies that people: Answer a. Do not take risk b. Only…
A: Risk involves the possibility or chances of something bad happening while taking a particular…
Q: Neuroeconomics attributes time-inconsistency to (A) high levels of the oxytocin hormone; (B) the…
A:
Q: What is considered "rational" by one person may not be"rational to another person because a) Of…
A: Rational preferences refers to the choices made by an individual in buying those goods and services…
Q: People in a certain group have a 0.75% chance of dying this year. If a person in this group buys a…
A:
Q: At a raffle, 100 tickets are sold for 1 prize of $100 and 3 consolation prizes of $20. If the ticket…
A: If the expected amount of winning is equal to the total cost of playing the game, it is considered…
Q: Economic factors in decision making fall under the category of A. В. C. decision impacts external…
A: Economic factors in decision making are external factors. This is because the firm cannot control…
Q: A new policy requires all automobiles to be equipped with side airbags. Assuming the airbags…
A: Here, it is given that a new policy is implemented, according to which all automobiles are required…
Q: Cost-Benefit Analysis
A: Calculate the value of a flight attendant using the given probability of death = 5000(1-1*(1/40000)…
Q: a continuous decision, Q, is B(Q) = 200 – 20? and the corresponding total cost is C(Q) = 4 + 2Q², so…
A: The marginal cost of production is the change in total production cost that comes from making or…
Q: The following payoff table provides profits based on various posible decision alternatives and…
A: Expected monetary value, Alternative 1 = 0.4 x 10,000 + 0.6 x 30,000 = 4,000 + 18,000 = 22,000…
Q: The risk-return tradeoff is -- an analysis of your risk tolerance an analysis of the risk of a…
A: The Risk-return tradeoff refers to an investment principle that shows the higher risk, higher the…
Q: = Questions 1.6 and 1.7 refer to a consumer with preferences over lotteries represented by the…
A: We use the following formula to calculate the expected utility: Expected Utility (EU) = pa(U(xa)) +…
Q: If a person lives for 3 years with a disease and the current standard of care for that disease means…
A: The term QALY refers to a Quality Adjusted Life Year. In health economic analyses, the QALY is often…
Q: Assume you are faced with two decision alternatives and two states of nature whose profit payoff…
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…
Q: only a,b,c,or d option no explanation Three applicants are to be selected at random out of 4 boys…
A: Given: Number of boys = 6 Number of girls = 4 Total students = 10
Q: The president of a small business is provided with the following options to improve his company by a…
A: the correct answer is option E, because it has the highest profit.
Q: A rational student will continue to studying in a given study session until a) the total value of…
A: Opportunity cost expresses the relationship between scarcity and choice. Opportunity cost is the…
Q: If the risk-free rate is 3 percent and the risk premium is 5 percent, what is the required return?
A: The required return = return on risk free invested + risk premium So if the risk premium is 5…
Q: What is the Risk-Adjusted Discount Rate Approach?
A: The rate of return is an important factor that determines whether the investment or project purpose…
Q: generally make rational decisions that maximize desirable outcomes in the absence of emotions…
A: As per rational choice theory people make rational decisions after weighing the pros and cons of an…
Q: Compare and contrast decision making in general and decision making when there is a resource…
A: Economics explains resource scarcity by stating that resources are scarce because we live in a world…
Q: Respond to the following questions in a minimum of 175 words: . Consider a situation that you might…
A: Probability is the mathematical term for the likelihood that something will occur. Probability plays…
Q: If the benefits of a given choice option are delayed further into the future(all other relevant…
A: Decrease If the benefits of a given choice option are delayed further into the future(all other…
Q: . If the decision maker knows nothing about the probabilities of the four states of nature, what is…
A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: What type of bias relies too heavily on one piece of information in making a final decision? A.…
A: At a marketplace, when making a research or decision, an individual may sometimes make biased…
The more risky future options or alternatives are
a) the less rational people will necessarily be.
b) the more
c) the greater their present values.
d) the greater their net values in the future.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Safety and risk are subjective concepts which depend on the followingfactors, except a. voluntary vs. involuntary risk b. occasional vs. frequent accidentsc. delayed vs. immediate risk d. expected probability What is the answer ?If the benefits of a given choice option are delayed further into the future(all other relevant factors remaining constant),then the present value of the option will a) increase b) decrease c) remain the same d) ( unknow, not enough information to say).A rational student will continue to studying in a given study session until a) the total value of studying equals the total opportunity cost. b)the marginal value fo the last unit studied equals the total opportunity cost. c) the expected grade is an A d)the expected grade is B e) the expected grade is passing
- In a repeated decision for which the present value of the benefits of cheating are greater than the present value of the costs of cheating, A. deciding to cheat is a value-maximizing decision. B.deciding to cheat is never a value-maximizing decision. C.None of the aboveGive proper explanation of the correct option and proper explanation of the incorrect optionsWhat is considered "rational" by one person may not be"rational to another person because a) Of ethical considerations that give rise to different value judgements b) People have different preferences c) Of the effects on the decision rendered by considering the future d) Some people may have access to more information than others e) All of the above
- At a raffle, 100 tickets are sold for 1 prize of $100 and 3 consolation prizes of$20. If the ticket is worth $2, what would be the expected value?The president of a small business is provided with the following options to improve his company by a consulting. Based on the data provided, which option should he choose? Cost (thousands of dollars) Benefit(thousands of dollars) Option A 10 50 Option B 50 100 Option C 120 150 Option D 5 15 Option E 125 200 a) option A b) option B c) option C d) option D e) option Ecould you answer part b to this question or if you have time part a and part b but part is more important. thank you Priyanka has an income of £90,000 and is a von Neumann-Morgenstern expected utility maximiser with von Neumann-Morgenstern utility index . There is a 1 % probability that there is flooding damage at her house. The repair of the damage would cost £80,000 which would reduce the income to £10,000. a) Would Priyanka be willing to spend £500 to purchase an insurance policy that would fully insure her against this loss? Explain. b) What would be the highest price (premium) that she would be willing to pay for an insurance policy that fully insures her against the flooding damage?
- Neuroeconomics attributes time-inconsistency to (A) high levels of the oxytocin hormone; (B) the quasi-hyperbolic discounting of future consumption; (C) the two distinct systems (spontaneous System 1 and calculating System 2)of decision making; (D) risk aversion.The dollar amount that a manager would be just willing to trade for the opportunity to engage in a risky decision is known as , Multiple Choice marginal utility of profit. the certainty equivalent. expected utility of profit. opportunity cost.Discuss how one is able to describe the riskiness of the decision-taker’s situation in ways which are intuitively appealing and analytically tractable.