If Someone Offers You a Lottery Ticket That Has a 25

question 37

Multiple Choice

If someone offers you a lottery ticket that has a 25 percent chance of winning $100, a 50 percent chance of winning $200, and a 25 percent chance of winning $1,000, what is the expected value of that lottery ticket?

• A) $200.
• B) $250.
• C) $375.
• D) $1,300.

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Definitions:

Trading Possibilities Curves

Graphical representations showing the different combinations of goods that two countries can trade, given their resources and technology.

Mutually Advantageous Trade

Trade that benefits all parties involved, allowing each to gain something of value by exchanging goods or services.

Production Possibilities Curves

A graphical representation that shows the maximum number of possible units a company can produce of two products within a set of inputs.