If fair insurance is offered to a risk-averse person, she will
A) buy enough insurance to eliminate all risk.
B) not buy any insurance because it is overpriced.
C) not buy any insurance since the marginal utility of the amount of the payment is positive.
D) buy enough insurance to cover about half of the possible loss.
A
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A decline in the interest rate will lead to an increase in the price of capital, supply of capital remaining constant
a. True b. False Indicate whether the statement is true or false
Price elasticity of demand measures the
a. change in quantity demanded generated by a change in price b. change in price generated by a change in quantity demanded c. percentage change in the price of a good demanded generated by a percentage change in people's income d. percentage change in quantity demanded generated by a percentage change in price e. percentage change in price generated by a percentage change in quantity demanded