-Ashton Has the Utility of Wealth Curve Shown in the Above

question 224

Multiple Choice

-Ashton has the utility of wealth curve shown in the above figure. He owns a sports car worth $30,000, and that is his only wealth. Ashton is a careless driver and there is a 30 percent chance that he will have an accident within a year. If he does have an accident, his car is worthless. Suppose all sports cars owners are like Ashton. An insurance company agrees to pay each person who has an accident the full value of their car. The company's operating expenses are $1,000. Ashton will ________ the company's policy because the minimum premium for such insurance that the company is willing to accept is ________ the maximum premium Ashton is willing to pay.

• A) buy; by $1,500 lower than
• B) buy; the same as
• C) not buy; $1,500 higher than
• D) not buy; $1,000 higher than

Understand the theory of behavioral plasticity and its implications for personality influences in the workplace.

Analyze the relationship between personality traits and workplace deviance.

Comprehend the effects of core self-evaluations on personal and organizational outcomes.

Distinguish between different motivational traits and their influences on behavior.

---

Definitions:

Effectively

In a manner that produces the intended result or a successful outcome.

False Assumption

An incorrect belief or premise that may lead to erroneous conclusions or actions.

Same Characteristics

Qualities, attributes, or features that are identical or very similar between entities.

Wealth Inequity

The unequal distribution of assets, wealth, and income among individuals or groups within a society, leading to economic disparity.