Quiz 33

Question 1

TRUE or FALSE. The poor tend to have agricultural plots that are not adjacent to one another in order to mitigate risk.

Answer 1

👉🏽 true

Question 2

The ways in which the poor tend to reduce their risk also tends to ________ their income.

Answer 2

👉🏽 decrease

Question 3

An actuarial fair price for insurance is equal to:

Answer 3

👉🏽 The expected value of the compensation received.

Question 4

Why are people willing to buy insurance above the actuarially fair price?

Answer 4

👉🏽 They are risk-averse.