IMHogg,who Is Risk-Neutral Over Votes,is Running for Office with 500,000

question 24

Multiple Choice

I.M.Hogg,who is risk-neutral over votes,is running for office with 500,000 sure voters.To add voters,he wants to choose n,the number of negative campaign ads to run,where 0 n 4.The ads will backfire with probability n/5 and give him no extra votes.Otherwise,the ads will work and give him 100,000 + 40,000n extra votes.So n = 0 implies a total of 600,000 votes.He should choose n = :

• A) 0.
• B) 1.
• C) 2.
• D) 3.
• E) 4.

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Definitions:

Adults Employed

The portion of the working-age population that is currently employed in the labor market.

Adults Unemployed

Individuals of working age who are without work, but are available for and seeking employment.

Adults Not in the Labor Force

Individuals over the working age who are neither employed nor actively seeking employment.

Labor Force

The total number of people, including both the employed and the unemployed, who are actively seeking employment.