Consider the Disaster Risk Decision Tree Model

question 35

Multiple Choice

Consider the disaster risk decision tree model.Using the notation from the model,what is the expected monetary value (cost) of choosing two suppliers?

• A)2C
• B)[1 - P(2)] × 2C + P(2)× (L + 2C)
• C)2C + SL
• D)P(2)× 2C + [1 - P(2)] × (L + 2C)
• E)2C + (S + U2)L

---

Definitions:

Money Supply

The sum of all available money in an economy at a given moment, encompassing cash, coins, and bank account balances.

Real GDP

The measure of the value of economic output adjusted for price changes (inflation or deflation), reflecting the real volume of production.

Price Level

The overall price mean for each and every product and service in the economic sector.

Aggregate Supply Curve

A graphical representation showing the relationship between the overall price level in an economy and the total output produced by firms at that price level.