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.

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Definitions:

Labeling

A theory in sociology that focuses on how the identity and behavior of individuals may be determined or influenced by the terms used to describe or classify them.

Therapeutic Value

The benefit or healing potential of a treatment, medication, or activity, particularly in terms of physical or mental health.

John Hagan's Classification

A categorization system developed by sociologist John Hagan that classifies types of crime based on their perceived severity, societal reactions, and the socio-economic background of offenders.

John Hagan

A renowned sociologist known for his contributions to the study of crime, law, and society.