Scenario 5.6: Consider the Information in the Table Below, Describing Choices for Choices

question 136

Multiple Choice

Scenario 5.6:
Consider the information in the table below, describing choices for a new doctor. The outcomes represent different macroeconomic environments, which the individual cannot predict.

-Refer to Scenario 5.6. If the doctor is risk-averse, she would accept:

• A) $50,000 for sure rather than take the risk of being a researcher.
• B) $60,000 for sure (the minimum HMO outcome) rather than take the risk of being a researcher.
• C) $95,000 for sure rather than face option 1 and option 2 in research.
• D) $275,000 for sure (the average of option 1 and option 2 in research), but not less, rather than face the risk of those two options.
• E) the research position because it has the highest possible income.

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Definitions:

Concentrates Urine

The process of increasing the solute concentration of urine while removing excess water, primarily occurring in the kidneys.

Dilute Urine

Urine that has a lower concentration of solutes, often a result of increased hydration or specific kidney functions.

Excretes

The elimination of waste products from the body or a biological system, a vital process for maintaining homeostasis.

Uric Acid

A waste product formed from the breakdown of purines, substances found in certain foods, which is excreted by the kidneys in urine.