Mustafa buys a $20 lottery ticket with a 5% chance of winning $2,000 and a 95% chance of winning zero. Based on this, what can we infer about Mustafa's risk preference?

Group of answer choices

1) Mustafa is risk loving.

2)Mustafa is Risk Neutral.

3) Mustafa is Risk Averse.

4) We cannot infer Mustafa's risk preference from the information given.

A flood insurance company wants to charge the same price to all its customers. They decide to charge $1000 to everyone, which is equal to the average costs associated with a flood for each consumer. As a result, which of the following is likely to happen?

Group of answer choices

1) All consumers will buy insurance.

2) The riskiest people will not buy flood insurance.

3) The least-risky people will not buy flood insurance.

4) No one will buy flood insurance.

GovernmentJobs.com is a that allows public sector employers to post jobs and workers to apply for those jobs. The website makes it easy for workers to apply for many jobs -- whether that worker is a good fit for the job or not. In fact the website boasts, "One Application, Thousands of Jobs." As a result, public sector employers who use this website to solicit applications, are looking for a quick way to sort through and identify which job candidates are serious applicants.

Of the following methods, which is likely to be the most effective at identifying serious candidates who are interested in the job?

Group of answer choices

1)Tell job candidates to put a big smily face in the upper left corner of their application to indicate their serious intent.

2) Allow job candidates to notify up to three jobs of their serious intent.

3) Tell employers to search for the word "interest" in each job candidates cover letter.

4) Have job candidates send messages to those jobs they are particularly interested in.