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If You Shift Your Risk by Using Other Means to Compensate

question 25

Multiple Choice

If you shift your risk by using other means to compensate for the loss like purchasing insurance, you have implemented a risk _________ strategy.


Definitions:

Diminishing Marginal Utility

The decline in the additional satisfaction a person derives from consuming one more unit of a good or service.

Demand Curves

A graphical representation showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.

Supply Curves

A graphical representation showing the relationship between the price of a good and the quantity supplied at those prices.

Total Utility

The overall satisfaction or value a consumer derives from consuming a particular quantity of goods or services.

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