The more risk averse people are, the ________ likely they will purchase insurance, and the_______ money they are willing to pay for the insurance.

Question

Quizplus · Accepted Answer

Risk aversion is the tendency to prefer certainty over uncertainty, which includes avoiding losses. The more risk averse an individual is, the more likely they are to purchase insurance to mitigate potential losses, and the more money they are willing to pay for the peace of mind that insurance provides.

The More Risk Averse People Are, the ________ Likely They