If Shaniq Is a Risk Averse, Then

question 40

Multiple Choice

If Shaniq is a risk averse, then

• A) her cost of risk exceeds $0.
• B) she has diminishing marginal utility of wealth.
• C) she is willing to buy insurance if the cost of insurance is low enough.
• D) all of the above.

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Definitions:

Medicare

A federal health insurance program in the United States for people aged 65 and older, certain younger people with disabilities, and people with End-Stage Renal Disease.

Medicaid

A government-funded program in the United States that provides health insurance to low-income individuals and families.

Private Sector Cost

The expense associated with goods, services, or activities delivered by businesses not owned or operated by the government.

Tax Compliance

The act of following and meeting all statutory responsibilities in tax reporting, payment, and documentation by individuals or entities.