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In: Economics

buying insurance is similar to a - selling risk b -irrationally avoiding life risk c- buying...

buying insurance is similar to

a - selling risk

b -irrationally avoiding life risk

c- buying risk

d-being a free rider

e- eliminating risk

Solutions

Expert Solution

Ans.- (E)

Buying insurance is similar to eliminating risk this is because once you are insured, you will be paid for the loss by insurance company. Thus, your risk has been eliminated by the insurance company.

Rahul Sunny answered 2 years ago
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