Refer to the scenario above. If the rules of the gamble are changed such that in the case of heads, the individual wins $100, and in the case of tails, the individual loses $50, the expected value of the gamble changes to:

A) $0.
B) $25.
C) $50.
D) $75.

B

Economics

You might also like to view...

According to the misperceptions theory, after an unanticipated increase in the money supply has occurred, the SRAS curve must shift ________ to restore general equilibrium; as it does so, the price level ________

A) downward; rises B) downward; falls C) upward; rises D) upward; falls

Economics

Which of the following methods did the government adopt in order to keep agricultural prices from falling too low?

a. reliance on free-market equilibrium b. soil bank programs c. land purchase subsidies d. mortgage relief e. price ceilings

Economics