There are two propositions: (a) i flip a coin, if it is heads, you are paid $3; if it is tails, you are paid $0. it costs you $1 to participate in this proposition. you may do so at any level, or repeatedly, and the payoffs scale accordingly. (b) you may keep your money in your pocket (earning no interest). here is a third proposition: (c) i flip the coin three times. if at least two of the flips are heads, you are paid $27; otherwise zero. how much is this proposition worth?

Anew japanese restaurant opens two blocks from your home. the owner, reiko, is a personal friend of yours. you don't particularly like japanese food, but you decide to go anyway; however, there is nothing on the menu that sounds appealing. unfortunately, it turns out that most of the people in your town don't like japanese cuisine either. reiko confides that business is not good, but she isn't sure what to do from an economic standpoint. which of the following would most likely describe adam smith's perspective on this problem? select one: a. reiko should ask the government for assistance. b. reiko should close the restaurant and find a different career. c. reiko should lay off workers and do everything herself to save money. d. reiko should add other foods to the menu and offer discounts to attract more people to her restaurant.