The Idea of Risk Aversion

question 38

Multiple Choice

The idea of risk aversion

• A) is at odds with the idea of insurance.
• B) helps explain the profitability of insurance companies.
• C) has nothing to do with insurance companies.
• D) helps explain the losses suffered by the insurance industry.
• E) helps explain why insurance companies in the long run are zero profit companies.

Identify the elements of the marketing mix and understand their significance.

Differentiate between needs, wants, and demands in marketing terminology.

Recognize the role of distribution (place) in the marketing mix.

Understand how promotion is utilized within the marketing mix.

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Definitions:

Deconditioning

Reversing conditioning to eliminate the conditioned response.

Conditioned Response

The response produced by the conditioned stimulus after classical conditioning (e.g., salivation following the sound of the bell).

White Rat

Often used in psychological experiments, it refers to a laboratory rat that has been bred to be white in color.

Rosalie Rayner

An American psychologist who, along with John B. Watson, conducted the famous Little Albert experiment, demonstrating that emotional reactions could be conditioned in humans.