What Would Best Explain Why a Generally Risk-Averse Person Would

question 42

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.

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Definitions:

Organizational Identification

Organizational identification is the sense of belonging that individuals feel towards their organization, influencing their alignment with the organization's values, goals, and actions.

Informal Networks

Social networks within an organization that transcend formal structures, facilitating the flow of information and influence.

Structural Integration

A concept in organization development focusing on aligning the structure of an organization with its objectives.

Cultural Differences

Variations in the norms, values, beliefs, and practices among people from different backgrounds or societies.