If You Live in an Area That Was Flooded by the 100-Year

question 60

Multiple Choice

If you live in an area that was flooded by the 100-year flood last year,you can conclude that

• A)the next 100-year flood will occur in exactly 100 years.
• B)the next 100-year flood will occur in exactly 99 years.
• C)you could be flooded by the 100-year flood again this year.
• D)you do not have to worry about another flood of that size during your lifetime.
• E)the next 100-year flood will occur in one half life,or 50 years.

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Definitions:

Utility Function

A formula that ranks various outcomes by their level of satisfaction or utility to a consumer.

Numeraire Good

A commodity selected as a standard of value and used as the unit of account in economic models, facilitating comparisons between different goods or services.

Initial Endowment

The initial allocation of assets, income, or resources that an individual, institution, or country possesses.

Min

The smallest or least possible amount, quantity, value, or degree.