-Adriana Wants to Try Working as an Independent Contractor This

question 108

Multiple Choice

-Adriana wants to try working as an independent contractor this summer. She has a 50 percent chance that she will make $9,000 and 50 percent chance that she will make nothing. Her utility of wealth curve is shown in the figure above. What's Adriana's cost of risk?

• A) $2,500
• B) $2,000
• C) zero
• D) $40

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Definitions:

Pneumoconiosis

A disease of the lungs caused by the inhalation of various forms of dust, often in occupational settings.

Bronchoscope

A medical instrument used to view the inside of the airways and lungs.

Bronchi

The major air passages of the lungs that diverge from the windpipe.

Asthma

A chronic inflammatory disorder of the airways that causes episodes of wheezing, breathlessness, chest tightness, and coughing.