. Tom's only wealth is $100 cash that is currently hidden in his house. Police reports suggest that there is 10% chance that Tom could fall victim to a robber and lose all of his wealth. Tom has declined the insurance company's offer to insure Tom against loss from theft for $8. An economist would conclude that Tom is r risk averse. r risk neutral. F risk loving. to irrational. QUESTION 11 1. If expected income is measured on the vertical axis and the standard deviation of one's income is measured on the horizontal axis, then the indifference curves for a risk neutral individual will be r negatively sloped, becoming flatter from left to right. to horizontal. r positively sloped, becoming steeper from left to right. r vertical. . lf expected income is measured on the vertical axis and the standard deviation of one's income is measured on the horizontal axis, then the indifference curves for a risk averse individual will be to negatively sloped , becoming flatter from left to right. r horizontal. r positively sloped, becoming steeper from left to right. F vertical. . Based on past experience, Eugene believes there is a 10% chance that he will win $1,000 at the casino tonight, a 70% chance that he will win $5,000, and a 20% chance that he will win $10,000.The expected value of Eugene's winnings is r\" $1,000. I." $5,333. r\" $5,600. '3\" $6,500 . Carson inherited 1 acre of land from his grandfather who had paid $1,000 cash for the land back in 1951. Today, land in that area sells for $200,000 per acre. What is the opportunity cost to Carson of keeping the land? r Nothing, since the land was inherited r Nothing, since the grandfather paid cash r $1,000, since this is what it cost Carson's grandfather r $200,000, since this is what Carson is giving up by keeping the land