Decisions Are Made When the State of Nature Is Known

question 4

Multiple Choice

Decisions are made when the state of nature is known under which of the following scenarios?

• A)decisions under certainty
• B)decisions under uncertainty
• C)decisions under state of nature
• D)decisions under risk

---

Definitions:

Gasoline Tax

A levy imposed by governments on the sale of gasoline, typically used to fund transportation projects and environmental initiatives.

Catalytic Converters

Devices used in vehicles that convert toxic gases and pollutants in exhaust gas into less toxic pollutants by catalyzing a redox reaction.

Externality

An economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume.

SARS

Severe Acute Respiratory Syndrome, a contagious and sometimes fatal respiratory illness caused by a coronavirus, with a notable outbreak in 2002-2003.