Define risk aversion and give an example of a risk-averse person?
What will be an ideal response?
Risk aversion is a characteristic of a person that dislikes risk. An example of this is someone who takes out rental or home insurance to reduce the risk of some kind of catastrophe from happening.
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The expected inflation rate is the
A) same as the actual inflation rate. B) inter-annual, non-energy inflation rate. C) inflation rate that people forecast and use to set the money wage and other money prices. D) rate that people expect the Bureau of Labor Statistics to announce each month, on which bookies take bets. E) inflation rate that the Federal Reserve system announces as the policy goal for the year.
The behavior of bidders in an auction is an example of:
A. consumer?producer rivalry. B. producer?producer rivalry. C. consumer?consumer rivalry. D. None of the statements associated with this question are correct.