Suppose That Individuals with State-Independent and Risk-Averse Tastes Insure Each

question 12

True/False

Suppose that individuals with state-independent and risk-averse tastes insure each other through state-contingent trades.If there is no aggregate risk, the competitive equilibrium price will then result in actuarily fair insurance terms.

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Definitions:

Invisible

Often used metaphorically to describe something that is not noticeable or recognized, despite its presence or impact.

Whiteness

A socially constructed racial category that consists of institutionalized practices and ideas that people participate in consciously and unconsciously. Whiteness is simultaneously taken for granted, largely invisible, and a yardstick for judgment of behavior and ideas.

Unspoken

Referring to something not expressed in spoken words but understood or implied.