Risk Aversion Helps to Explain Various Things We Observe in the Economy,including

question 45

Multiple Choice

Risk aversion helps to explain various things we observe in the economy,including

• A)adherence to the old adage,"Don't put all your eggs in one basket."
• B)insurance.
• C)the risk-return trade-off.
• D)All of the above are correct.

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Definitions:

Sebaceous Glands

Glands in the skin that secrete sebum, an oily substance that lubricates the skin and hair.

Sweat Glands

Specialized skin glands in mammals that produce sweat, a fluid consisting primarily of water, salts, and urea, as a means of cooling the body through evaporation.

Elasticity

The ability of a material or tissue to resume its normal shape after being stretched or compressed.

Skin

Outer covering of the body; can be called the integumentary system because it contains organs such as sense organs.