Individuals who face greater risksA) are more likely to purchase insuranceB) are less likely to purchase insuranceC) are neither more nor less likely to purchase insuranceD) are risk neutral

Question

Individuals who face greater risks​A) ​are more likely to purchase insuranceB) are less likely to purchase insuranceC) are neither more nor less likely to purchase insuranceD) ​are risk neutral

Rolonda Belton · Accepted Answer

Final Answer : A, Explanation :  Individuals who face greater risks are more likely to purchase insurance as they have more to lose in case of a negative outcome. Insuring against those risks provides a sense of security to these individuals.

Individuals who face greater risks

A) are more likely to purchase insurance
B) are less likely to purchase insurance
C) are neither more nor less likely to purchase insurance
D) are risk neutral

Definitions

Learning Objectives

Learning Objectives

Related questions

Individuals who face greater risks​A) ​are more likely to purchase insuranceB) are less likely to purchase insuranceC) are neither more nor less likely to purchase insuranceD) ​are risk neutral

Definitions

Learning Objectives

Learning Objectives

Related questions

Individuals who face greater risks

A) are more likely to purchase insurance
B) are less likely to purchase insurance
C) are neither more nor less likely to purchase insurance
D) are risk neutral