Final Answer:
Betting $7 on a local race involves risk; if the outcome doesn't favor the bet, it results in a monetary loss, following standard gambling principles.
Thus option a is correct.
Step-by-step explanation:
Betting involves a degree of risk, and in this case, betting $7 on a local race doesn't guarantee a return. If the outcome doesn't favor the bet, the result is a monetary loss. The potential outcome isn't guaranteed profit or a neutral scenario; it's tied to the possibility of losing the initial amount wagered.
In this instance, there are two potential outcomes: a win or a loss. If the bet wins, the outcome would be a financial gain, but if it doesn't, the $7 bet would result in a monetary loss. The $7 represents the stake placed on the bet, and if the chosen participant or outcome doesn't win, the money is lost.
While charitable races are for a good cause, the betting outcome still aligns with the usual principles of gambling, where one either wins or loses the stake put into play. Therefore, the potential outcome of this $7 bet is a monetary loss if the chosen participant or result doesn't succeed.
Therefore option a is correct.