Question

A football game between the Thunder and the Sharks is in its closing minutes, with the Thunder ahead by 20 points. The Thunder’s coach considers sending in the second-string quarterback. This would reduce the risk of the star quarterback getting injured, but the second-string quarterback is not very good. Complete the passage describing the coach’s decision in economic terms.

1. Fill in the blanks with appropriate option.
The coach is weighing a slightly ___________ risk of losing against a slightly decreased risk of injury to the star quarterback. This weighing of ________ is an example of ___________, because the star quarterback was in for most of the game, and the coach's decision concerns ____________ shifts in probabilities with the game nearly over
Options:
A) decreased *
B) large
C) marginal thinking.
D) small
E) increased
F) incentives
G) trade-offs

Answer 1

The coach's decision to consider substituting the quarterback is depicted using economic concepts, specifically marginal thinking and the evaluation of trade-offs.

Step-by-step explanation:

The coach is weighing a slightly increased risk of losing against a slightly decreased risk of injury to the star quarterback. This weighing of trade-offs is an example of marginal thinking, because the star quarterback was in for most of the game, and the coach's decision concerns incremental shifts in probabilities with the game nearly over.

Like the basketball player in the passage who makes a pass without calculating all physical factors, the coach makes a decision based on the economic concept of marginal analysis. Instead of considering all possible outcomes, he focuses on the marginal changes in the risks associated with altering the current situation – the marginal increment or decrement in the risk of losing the game versus the marginal improvement in the health prospects for the starting quarterback.

Answer 2

Answer: increased, trade- offs, marginal thinking, small.

Step-by-step explanation:

According to the passage, The coach is weighing a slightly increased risk of losing against a slightly decreased risk of injury to the star quarterback. This weighing of trade-offs is an example of marginal thinking, because the star quarterback was in for most of the game, and the coach's decision concerns small shifts in probabilities with the game nearly over.