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A Nyce Place to Work is introducing a new product.  They have two choices in bringing the new product to market.  They can do everything themselves or they can bring in a partner on this product.  If they do everything themselves it will cost $1,000,000 and they expect the following payoffs: No Partner Probability Payoff Payoff #1 .5 3,000,000 Payoff #2 .5 600,000 If they bring in a partner, it will cost $500,000 with the following payoffs: Partner Probability Payoff Payoff #1 .5 1,500,000 Payoff #2 .5 500,000 Which option should A Nyce Place to Work choose if they want to maximize the following ratio: expected payoff/initial cost?

In module 6 we discussed incentive systems.  The most common incentives that are offered today are:

According to the reading “Thinking Like an Economist”, some of the common pitfalls in decision making include: Ignoring Implicit Costs Failing to Ignore Sunk Costs Failure to Understand the Average-Marginal Distinction

According to “A Scientific View of Risk”, determining the costs of risk reduction may require putting a value on ______________.

Static risks are different from dynamic risks in that static risks are:

In module 6 we discussed incentive systems.  __________________ refers to the fact that it is very difficult to predict every response to an incentive system that is put in place.  

Utility functions are normally a function of:

According to “Risk and the Entrepreneurial Spirit”, important characteristics of a model include:

In module 3 we discussed regret tables.  Regret tables are used to measure:

Which of the following is NOT a government role in the public sector of the US economy?