Risk-averse individuals:
A)will not gamble at casinos such as those found in Las Vegas.
B)will pay higher insurance premiums based on their risk aversion.
C)are a minority of the population.
D)have upward-sloping marginal utility functions.

Question

Quizplus · Accepted Answer

Risk-averse individuals are more likely to be willing to pay higher insurance premiums in order to avoid potential financial losses, as they prioritize avoiding risk over potential gains.

Risk-Averse Individuals