An individual purchases a one-year, $150 warranty for a new television. They estimate there is a 30% chance the television will require a repair that would cost $600 without the warranty. At the end of the year, the television has not needed any repairs. The individual concludes that buying the warranty was a poor financial decision because they 'wasted' $150. Which statement best evaluates this conclusion from a probabilistic decision-making perspective?

In a 1930 essay, an influential economist accurately predicted that technological progress would dramatically increase societal wealth over the next century. Based on this, he forecasted that people in developed countries would only need to work about 15 hours per week to satisfy their material needs. While the wealth increase occurred as predicted, the average workweek has not fallen to this level. Which of the following best analyzes the primary reason for this discrepancy?

Societal Choices: Income vs. Leisure

A prominent 20th-century economist predicted that by the 21st century, technological advancements would allow people in developed nations to work only 15 hours per week. The primary reason this prediction failed to materialize is that technological progress was much slower than anticipated.

Evaluating a 20th-Century Economic Forecast

A famous 1930 economic essay made predictions about the future of work and wealth. Match each component of the prediction and its actual outcome to the correct description.

Analysis of a Historical Economic Prediction

A well-known 1930 economic prediction correctly foresaw massive gains in technological progress and wealth but incorrectly forecasted a 15-hour workweek. The primary error in the forecast was underestimating how strongly future generations would continue to prioritize increased ______ over gaining more leisure time.

Arrange the following statements into a logical sequence that correctly evaluates the 1930 prediction about a 15-hour workweek.

Evaluating a Modern Work-Life Policy Proposal