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

question 137

Multiple Choice

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

• A)increase;increase
• B)decrease;decrease
• C)increase;decrease
• D)decrease;increase

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Definitions:

Human Behavior

The range of actions and mannerisms exhibited by humans in conjunction with their environment, influenced by culture, attitudes, emotions, and genetics.

Type I Error

A statistical error that occurs when a null hypothesis is rejected when it is actually true.

Type II Error

A statistical error in which a false null hypothesis is not rejected, commonly known as a "false negative."

Counseling Psychologist

A professional specialized in offering therapy services to help individuals deal with emotional, social, vocational, educational, health-related, developmental, and organizational concerns.