Question

A football game between the Thunder and the Sharks is in its closing minutes, with the Thunder ahead by 20 points. The Thunder’s coach considers sending in the second-string quarterback. This would reduce the risk of the star quarterback getting injured, but the second-string quarterback is not very good. Complete the passage describing the coach’s decision in economic terms.
1. Fill in the blanks with appropriate option.
The coach is weighing a slightly ___________ risk of losing against a slightly decreased risk of injury to the star quarterback. This weighing of ________ is an example of ___________, because the star quarterback was in for most of the game, and the coach's decision concerns ____________ shifts in probabilities with the game nearly over
Options:
A) decreased *
B) large
C) marginal thinking.
D) small
E) increased
F) incentives
G) trade-offs

Answer 1

Answer: increased, trade- offs, marginal thinking, small.

Explanation:

According to the passage, The coach is weighing a slightly increased risk of losing against a slightly decreased risk of injury to the star quarterback. This weighing of trade-offs is an example of marginal thinking, because the star quarterback was in for most of the game, and the coach's decision concerns small shifts in probabilities with the game nearly over.