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Individuals Value Insurance Because They Would Ideally Like To

Question 22

Multiple Choice

Individuals value insurance because they would ideally like to:


A) have more consumption when an adverse event like unemployment or illness befalls them.
B) have less consumption when an adverse event like unemployment or illness befalls them.
C) have the same consumption regardless of whether an adverse event like unemployment or illness befalls them.
D) not have an adverse event like unemployment or illness befall them.

Correct Answer:

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