Alternative programs to combat the outbreak of an unusual Asian disease,

1. Imagine that the U.S. is preparing for the outbreak of an unusual Asian disease, which is expected to kill 600 people. Two alternative programs to combat the disease have been proposed. Assume that the exact scientific estimate of the consequences of the program are as follows: If a program A is adopted, 200 people will be saved. If program B is adopted, there is a 1/3 probability that 600 people will be saved, and 2/3 probability that no people will be saved. Which of the two programs would you favor: a) Program A b) Program B 2. Imagine that the U.S. is preparing for the outbreak of an unusual Asian dis- ease, which is expected to kill 600 people. Two alternative programs to combat the disease have been proposed. Assume that the exact scientific estimate of the consequences of the programs are as follows: If program A is adopted, 400 people will die. If program B is adopted there is 1/3 probability that nobody will die, and 2/3 probability that 600 people will die. Which of the two programs would you favor: a) Program A b) Program B 3. Imagine that you face the following pair of concurrent decisions. First exam- ine both decisions, then indicate the options you prefer. a) a sure gain of $240. b) 25% chance to gain $1000, and 75% change to gain $0. 4. Imagine that you face the following pair of concurrent decisions. First exam- ine both decisions, then indicate the option you prefer. a) a sure loss of $750. b) 75% change to lose $1000, and 25% chance to lose $0. 5. A shortage has developed for a popular model of automobile, and customers must now wait two months for delivery. A dealer has been selling these cars at list price. Now the dealer prices this model US $200 above list price. Is this: a) Acceptable b) Unfair 6. A shortage has developed for a popular model of automobile, and customers must now wait two months for delivery. A dealer has been selling these cars at a discount of US $200 below the list price. Now the dealer sells this model only at list price. Is this: a) Acceptable b) Unfair 7. A company is making a small profit. It is located in a community experienc- ing a recession with substantial unemployment but no inflation. The company decides to decrease wages and salaries 7% this year. Is this: a) Acceptable b) Unfair 8. A company is making a small profit. It is located in a community experienc- ing a recession with substantial unemployment but no inflation. The company decides to increase salaries only 5% this year. Is this: a) Acceptable b) Unfair 9. Your friend tells you the case you want for your new phone, that costs US $20, is only US $10 across town. You: a) pay US $20 b) go across town and pay US $10. 10. Your friend tells you the phone you want, that costs US $130, is only US $120 across town. You: a) pay US $130 b) go across town and pay US $120.