Question

To an economist, risky options ________.

A) are always bad options

B) are always good options

C) have costs and benefits that are fixed in advance

D) do not have costs and benefits that are fixed in advance

Answer 1

It can be mentioned that for an economistwhisky option are neither nor bad where he feels that it depends on the behaviour factor of the people and also the cost and benefit are not fixed in advance because it is a risky option which will not have a fixed return

Therefore (a,b,c) are wrong

because it is a risky option which will not have a fixed return there can be different benefits and costs at different level such as on the return is falling in the price can also fall which means the cost increases and vice versa and therefore the benefits and cost deviate from time to time

Therefore (d) is the answer to this question