Asked by Raven Staten on Sep 24, 2024
Verified
Individuals who are more risk averse
A) buy less insurance
B) buy more insurance
C) are not more or less inclined to buy insurance
D) are philosophically opposed to insurance
Risk Averse
A characteristic of individuals or entities that prefer to avoid risk, leading them to choose safer, more predictable options or investments.
- Understand the concept of risk aversion and its implications on insurance purchasing behavior.
Verified Answer
EP
Essence Patton5 days ago
Final Answer :
B
Explanation :
Risk-averse individuals tend to be more cautious and concerned about potential losses, which can lead them to purchase more insurance to mitigate those risks. They are willing to pay a premium to protect themselves against uncertain outcomes, making the purchase of insurance a more attractive option for them.
Learning Objectives
- Understand the concept of risk aversion and its implications on insurance purchasing behavior.