Refer to the Data Provided in Table 17 -Refer to Table 17

question 125

Multiple Choice

Refer to the data provided in Table 17.1 below to answer the following question(s) . The table shows the relationship between income and utility for Jane.
Table 17.1
$$\begin{array} { | r | c | } \hline \text { Income } & \text { Total Utility } \\\hline \$ 0 & 0 \\\hline \$ 20,000 & 25 \\\hline \$ 40,000 & 45 \\\hline \$ 60,000 & 60 \\\hline \$ 80,000 & 70 \\\hline\end{array}$$
-Refer to Table 17.1. Suppose Jane has a 1/3 chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Jane does not become disabled, she will earn her usual salary of $60,000. Jane has the opportunity to purchase disability insurance which will pay her her full salary in the event she becomes disabled. How much would such an insurance policy be worth to Jane?

• A) $0
• B) $20,000 or less
• C) more than $20,000 but less than $40,000
• D) $40,000 or more

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Definitions:

Inherent Power

Inherent powers are those powers not explicitly specified but are necessary for the government or an authority to carry out its governing responsibilities.

Ban

An official or legal prohibition against something, typically enforced by a government or organization.

Discrimination Claim

A legal complaint filed when an individual believes they have been treated unfairly or unjustly because of certain characteristics like race, gender, age, etc.

Title VII

A section of the Civil Rights Act of 1964 prohibiting employment discrimination based on race, color, religion, sex, or national origin.