Peg Is a Contestant on a Game Show

question 95

Multiple Choice

Peg is a contestant on a game show. At this point in the game, she can either accept $1,000 or she can throw one dart at a game board for a chance of winning $500,000. If Peg accepts the guaranteed $1,000, she is displaying __________ behavior.

• A) optimistic
• B) risk-adverse
• C) prospective
• D) risk-neutral
• E) risk-taking

---

Definitions:

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.

Adequacy of Consideration

An evaluation of whether the value exchanged between parties in a contract is reasonably fair at the time of the agreement.

Bargained-for Exchange

An essential principle of contract law involving the mutual exchange of promises or consideration between parties entering an agreement.

Legal Sufficiency

The adequacy of evidence or legal grounding in an agreement, claim, or defense that meets minimum legal standards to proceed or withstand scrutiny in a court of law.