A Farm Owner Has Three Possible Hiring Decisions

question 18

Multiple Choice

A farm owner has three possible hiring decisions.His profits depend on the growing season as shown below.If the probability of a good growing season is 0.75.If the farmer is risk averse, he would ________________________ .

• A)hire migrant workers
• B)hire teenagers
• C)do not do any extra hiring
• D)make the same decision as he would using the expected value approach
• E)give up farming

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Definitions:

Irritable

A psychological state or condition characterized by increased sensitivity and a tendency to become easily annoyed or angered.

Puberty

The developmental period in humans during which physical and hormonal changes occur, leading to sexual maturity.

Storm And Stress

A theory that suggests adolescence is a period of turmoil and stress, characterized by conflicted relationships, mood swings, and risky behavior.

Western Cultures

Refers to societies predominantly influenced by European traditions, norms, and values, encompassing various aspects like philosophy, art, and social organization.