If Rory McIlroy Only Earned $500 Per Hour Playing Golf

question 80

Multiple Choice

If Rory McIlroy only earned $500 per hour playing golf instead of $1,000 per hour, what should he do?

• A) He should still hire the gardener.
• B) He should do the weed-whacking himself.
• C) He should hire a less-productive gardener.
• D) He should be indifferent as to who does the weed-whacking, for the difference in hourly earnings would now be insignificant.

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Definitions:

Risk Aversion

A preference for avoiding loss over making a gain, indicating a greater sensitivity to losses than to equivalent gains.

Mental Accounting

A concept in behavioral economics where individuals categorize and treat money differently based on subjective criteria, often leading to irrational financial decisions.

Retirement Account

A financial account designed for saving money towards retirement, often offering tax benefits.

Contributions

Payments or services provided by individuals or organizations towards a common fund or cause, often used in the context of charitable donations or participation in joint projects.