Multiple Choice
What would best explain why a generally risk-averse person would bet $100 during a night of blackjack in Las Vegas?
A) Risk aversion relates to income choices only, not expenditure choices.
B) Risk-averse people may gamble under some circumstances.
C) The economics of gambling and the economics of income risk are two different things.
D) Risk-averse people attach high subjective probabilities to favorable outcomes, even when objective probabilities are known.
Correct Answer:
Verified
Correct Answer:
Verified
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