Frank Willis Has the Right to Enter a Contest Where

question 55

Multiple Choice

Frank Willis has the right to enter a contest where he has a 50% chance of winning $50,000 and a 50% chance of losing $0.It costs Frank nothing to enter the contest.If he is willing to give up his right to enter the contest for a sure payment of $25,000, he is ___.

• A)a risk avoider
• B)an optimist
• C)a risk taker
• D)risk neutral (an EMV'er)
• E)a gambler

---

Definitions:

Exporters

Individuals or companies that sell goods or services produced in one country to buyers in other countries.

Importers

Businesses or individuals that buy goods or services from foreign countries for use in their home country.

Western European Countries

Nations located in the Western part of Europe, including France, Germany, Spain, and the United Kingdom, known for their developed economies and democratic governments.

European Union (EU)

A political and economic union of 27 European countries that are located primarily in Europe, aiming to ensure free movement of people, goods, services, and capital.