People are more likely to buy insurance if they are
A) risk averse
B) risk preferring
C) risk neutral

Question

Quizplus · Accepted Answer

Risk aversion means that people are more likely to avoid potential losses, which makes them more likely to purchase insurance to protect themselves from those losses. Risk preferring individuals, on the other hand, are more willing to take on risk and may be less inclined to purchase insurance. Risk neutrality means that individuals do not have a strong preference for either risk or certainty, and their decision to purchase insurance may depend on other factors.

People Are More Likely to Buy Insurance If They Are