Read the Following Scenario and Answer the Question Below

question 11

Multiple Choice

Read the following scenario and answer the question below.
Northeast of Australia and northwest of Fiji lies the isolated tropical island of Tikopia. Less than two miles in length, it supports 1200 people and has been continuously occupied for nearly 3000 years, with the population holding steady for much of that time. It has a two-month dry season every year and lies in the Pacificʹs cyclone belt, which destroys homes and gardens on an unpredictable but regular basis. Tikopia is too far away from other islands to have any regular contact; the islanders must be self-sufficient.
-As you approach Tikopia, it appears to be covered with rainforest, with several layers of trees of various sizes. Close inspection shows that from the tallest trees to the smallest yam plants growing in the shaded gardens, the plants are all either edible or used for other purposes. It is probably true that ______________

• A) the inhabitants are extremely lucky to have such a wide array of useful plants
• B) visitors brought these non-native plants, which became invasive species
• C) three thousand years of breeding experiments led to the wide array of useful plants
• D) the heavy rainfall is responsible for the wide array of useful plants
• E) the Tikopians traded with other islands over centuries to obtain this carefully selected variety of plants

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Definitions:

Fair Bet

A betting proposition where the expected gains or losses are theoretically equal, implying no advantage to either side.

Zero Sum Game

A situation in-game theory where one participant's gain or loss is exactly balanced by the losses or gains of the other participants.

Utility

The measure of satisfaction or value that an individual derives from consuming goods and services.

Risk-neutral

A characteristic of individuals or entities who are indifferent to risk when making investment decisions, focusing solely on the expected returns.