Use the Following to Answer Questions

question 46

Multiple Choice

Use the following to answer questions :
Scenario: Choosing Insurance
The Ramirez family owns three cars and is considering buying insurance to cover the cost of repairs.They face two possible states: in state 1,their cars need no repairs and their income available for purchasing other goods and services is $50 000;in state 2,their cars need $10 000 worth of repairs and their income available for purchasing other goods and services is reduced to $40 000.The probability of repairs is 10%,while the probability of no repairs is 90%.
-(Scenario: Choosing Insurance) Use Scenario: Choosing Insurance.For $1 000,the Ramirez family can buy insurance that will cover the full cost of repairs.If family members are risk-averse and want to maximize their expected utility,they will:

• A) buy the insurance.
• B) be indifferent between buying and not buying the insurance since their expected income for purchasing other goods and services is $49 000,regardless of what they do.
• C) buy the insurance as long as the utility of having a certain income of $48 000 to buy goods and services other than car repairs is higher than the utility associated with their expected income without insurance.
• D) self-insure.

---

Definitions:

B-cells

Immune cells that produce antibodies and are an essential part of the adaptive immune response.

Antibodies

Proteins generated by the immune system that recognize and bind to specific foreign particles, such as bacteria and viruses, to help protect the body against infections.

Secondary Response

The immune system's enhanced reaction to a previously encountered antigen, characterized by a more rapid and potent response.

Memory Response

Memory response refers to the immune system's ability to quickly recognize and react to previously encountered pathogens, providing faster and more effective protection.