-The Above Figure Shows Bob's Utility Function

question 100

Multiple Choice

-The above figure shows Bob's utility function.He currently has $100 of wealth,but there is a 50% chance that it could all be stolen.What is the most Bob would pay for insurance that would replace his $100 should it be stolen?

• A) $30
• B) $50
• C) $70
• D) $75

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Definitions:

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Group Polarization

The tendency for group members' opinions to become more extreme (either stronger or weaker) after group discussions.

Bystander Effect

A social psychological phenomenon in which individuals are less likely to offer help to a victim when other people are present.

Diffusion of Responsibility

A phenomenon where individuals in a group are less likely to take action or feel a sense of responsibility because the responsibility is perceived to be shared among all group members.