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:

Primary Reinforcer

An unlearned reinforcer whose effectiveness is based on the biological makeup of the organism and not on learning.

Conditioned Reinforcer

Another term for a secondary reinforcer.

Observational Models

Learning through observing the behaviors of others and the outcomes of those behaviors, also known as social learning.