People buy insurance:
a. to defer consumption.
b. to insure against poor health.
c. because they are risk averse.
d. to maximize their welfare.
e. because of externalities.
c. because they are risk averse.
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A specialized rice grower sells rice in two markets, the United States and Japan, and the marginal cost is the same in both markets. The price elasticity of demand in the United States is -2.0, and the price elasticity of demand in Japan is -1.5
If the grower practices group price discrimination, which country's consumers will pay a higher price and by how much?
The value of goods produced by coalition A is worth $50, and by coalition B is worth $30 . If together they produce $100 of them, the game is called superadditive
Indicate whether the statement is true or false
Refer to the above figure. Which variable is autonomous with respect to real GDP?
A. real investment spending B. the sum of real consumption and real saving C. real consumption spending D. real saving
Why is the difference between the actual and expected rates of inflation important for explaining inflation?
What will be an ideal response?