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In a Particular Insurance Market,there Is a Decrease in the Degree

question 114

Multiple Choice

In a particular insurance market,there is a decrease in the degree of risk aversion among suppliers.Holding everything else constant,the equilibrium premium will _____ and the equilibrium quantity of insurance will _____.


Definitions:

Recognition

The cognitive process of identifying previously encountered information from a group of choices.

Cognitive Process

The cognitive process of gaining knowledge and comprehension via thinking, experiencing, and sensory perception.

Familiar

Well known from long or close association.

Gestalt School

A psychological approach emphasizing that the human mind perceives objects not by their individual parts but as whole structures or patterns.

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