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Question 173

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Use the following to answer questions:
Figure: Risk Aversion Use the following to answer questions: Figure: Risk Aversion -(Figure: Risk Aversion) Look at the figure Risk Aversion. Bob and Nancy have the same income and total utility. Nancy will be willing to pay a ____ insurance premium than Bob because she is _____ risk-averse. A) higher; more B) lower; more C) lower; less D) higher; less
-(Figure: Risk Aversion) Look at the figure Risk Aversion. Bob and Nancy have the same income and total utility. Nancy will be willing to pay a ____ insurance premium than Bob because she is _____ risk-averse.


A) higher; more
B) lower; more
C) lower; less
D) higher; less

Correct Answer:

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