Which of the following phenomena shows that risk aversion is the characteristic of many people?

Question

Quizplus · Accepted Answer

Auto insurance is an example of risk aversion as it provides protection against potential losses from accidents or theft. By purchasing auto insurance, individuals are mitigating their risk and choosing to pay a small premium instead of bearing the potentially much larger cost of an accident or theft without insurance.

Which of the Following Phenomena Shows That Risk Aversion Is