Individuals who face greater risks
A)are more likely to purchase insurance
B)are less likely to purchase insurance
C)are neither more nor less likely to purchase insurance
D)are risk neutral

Question

Individuals who face greater risks​
A)​are more likely to purchase insurance
B)are less likely to purchase insurance
C)are neither more nor less likely to purchase insurance
D)​are risk neutral

Quizplus · Accepted Answer

Individuals who face greater risks are more likely to purchase insurance as they have more to lose in case of a negative outcome. Insuring against those risks provides a sense of security to these individuals.

Individuals Who Face Greater Risks​

Individuals Who Face Greater Risks