Equality refers to how the pie is divided, and efficiency refers to the size of the economic pie

The condition of scarcity:

a. prevails in poor economies. b. cannot be eliminated. c. prevails in rich economies. d. All of these choices are correct.

Suppose you have $200 with which you can buy shares of stock from two companies: ABC Hot Chocolate Company and XYZ Lemonade. Each company's stock currently sells for $100 per share. If the temperature next year is lower than average, the stock price for ABC will increase by $20, and the stock price for XYZ will not change. If the temperature next year is higher than average, the stock price for XYZ will increase by $20, and the stock price for ABC will not change. There is a 50% chance that it will be colder than average next year, and a 25% chance that it will be warmer than average. If you purchase one share of ABC stock and one share of XYZ stock, your expected gain will be ________.

A. $0 B. $40 C. $10 D. $15