________ Means Responding to Risk by Taking Out Insurance

question 119

Multiple Choice

________ means responding to risk by taking out insurance.

• A) Risk reduction
• B) Risk acceptance
• C) Risk avoidance
• D) Risk transference

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Definitions:

Dominant Strategy

A dominant strategy is the best course of action for a player no matter what the other players do, in game theory and economic strategy.

Nash Equilibria

A concept in game theory where no player can benefit by changing strategies if others keep their strategies unchanged.

Subsidized Payoffs

Financial benefits provided, often by a government, to support or encourage certain activities or reduce associated costs.

English Auction

A bidding process where the price of the item for sale ascends with each bid, and the highest bid at the auction's close wins.