Beat: I missed a question on my Economics Final b/c of gambler mindset

[Nielsio]

It's not gambling when it's not really money.

[tufat23]

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lol @ $5 being a risk

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Well, it is micro economics.

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touche.

[JH1]

I would answer E to #1 and A to #2 and dispute. Just because that's what it says in the textbook doesn't mean it's right (bring some psych books to class next time just to scare him) ...

you get a lot of 'rational' people investing in the stock market rather than a 50% ROI like this...

and tell your prof to put me down for 100k hands, I'm a rational guy.

[88jayhawks]

high schoolers: college is not like this unless you go to the worst junior college in the country/world

[vos]

mike caro`s head would assplode as his decks have 4 colors

[Jago]

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WTF DOES TSHI HAV ETO DO WITH ECONOMICS??

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Marginal Utility. It's part of microeconomics.

The answer isn't E because of RoR and marginal utility. Some (rational) people are very risk adverse.

And yes, this topic is quite simple/logical for poker players but economics does get harder

[Gildwulf]

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I just got graduated college with an econ degree and after all of my pain, I sure hope this was a middle school economics final. Otherwise, I picked the wrong school.

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close pick between english major and econ i see

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lol nice catch

[hasugopher]

#2) you are risk-adverse to the point of being utterly stupid and completely irrational

[mother_brain]

e) player realizes grimmstar is offering the deal and will back out if the wrong card comes.

and yes econ gets harder, but stays just as stupid.

[Schmitty 87]

I have a similar story. My roommate's IR professor asked the class if they'd take $30 guaranteed or a flip for $70, and my roommate said that most raised their hand for the $30 guaranteed. What a bunch of nits. I'd imagine most of 2+2 would take a -EV flip for $55, forget about $70.


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Marginal Utility. It's part of microeconomics.

The answer isn't E because of RoR and marginal utility. Some (rational) people are very risk adverse.

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Ya as long as the guys money utility curve bends over it's all good. Doesn't matter much in itself, but since a lot of people have utility curves that bend over, it has implications in macroecon for doing things like eliminating business cycles (ie the government pays people in bad times, taxes people in good times).