Pirates Have Been Intensely Attacking Ships Off the Shore of Somalia

question 207

Multiple Choice

Pirates have been intensely attacking ships off the shore of Somalia this year. Boat owners have reportedly coughed up more than $30 million in ransom and insurance premiums have shot up. The pirate activity means that the expected utility of wealth of risk averse boat owners who do not have insurance and sail near Somalia is ________.

• A) increasing
• B) decreasing
• C) staying the same
• D) not able to be determined without knowing the extent of risk aversion

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Definitions:

Mass Production

A manufacturing process that produces large quantities of standardized products, utilizing assembly lines and automation to achieve efficiency and uniformity.

Labor Unions

Organizations formed by workers to advocate for their collective interests in wages, benefits, working conditions, and labor policies.

Company Unions

Labor organizations that are controlled by the employer rather than independently run by the workers, often seen as a way to prevent independent unionization.

Worker Controlled Unions

Labor organizations that are directly governed and operated by their members, ensuring their interests and concerns are central to union activities.