In Eugene, Oregon, Next Year There Is a 2% Chance

question 10

Multiple Choice

In Eugene, Oregon, next year there is a 2% chance of an earthquake severe enough to destroy all buildings and personal property. Quincy, who has $3,000,000 in buildings and personal property, has the opportunity to purchase complete earthquake insurance. Which is true?

• A) Quincy should not purchase earthquake insurance unless he can get it for less than $60,000, because that's all he could possibly lose in an earthquake.
• B) Quincy should not purchase earthquake insurance unless he can get it for less than $60,000, because that's his expected loss in an earthquake.
• C) If Quincy buys earthquake insurance, and an earthquake does not occur, he will have received no utility from the transaction.
• D) What Quincy is willing to pay for the earthquake insurance depends upon his degree of risk aversion.
• E) Quincy should be willing and able to pay up to $3,000,000 for earthquake insurance.

Understand different types of conflicts and how they impact decision making.

Grasp the association between brain function and emotions.

Comprehend the evolutionary perspective of attention and emotions.

Differentiate between motivation and emotion.

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Definitions:

Official Crime Statistics

Crime data collected and reported by law enforcement agencies, typically representing a quantified summary of offenses recorded in a specific period.

Moral Panics

Widespread fear or concern, often irrational, about an issue that appears to threaten the social order.

Imprisonment

The act of confining someone in a prison as a legal punishment for a crime.

Industrial Societies

Societies where the primary means of subsistence are derived from mechanical production, leading to a complex division of labor and an emphasis on manufacturing and industry.