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Author Question: Which of the following losses to an individual would an insurance company NOT cover? A) The ... (Read 36 times)

geoffrey

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Which of the following losses to an individual would an insurance company NOT cover?
 
  A) The person's automobile is stolen.
  B) Fire destroys the person's home.
  C) The person's father dies.
  D) The person's country is invaded.

Question 2

If fair insurance is offered to a risk-averse person, she will
 
  A) buy enough insurance to eliminate all risk.
  B) not buy any insurance because it is overpriced.
  C) not buy any insurance since the marginal utility of the amount of the payment is positive.
  D) buy enough insurance to cover about half of the possible loss.


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gcook

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geoffrey

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)


kusterl

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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