Which of the Following Is True About an Individual's Choice

Multiple Choice

Which of the following is true about an individual's choice of insurance assuming state-independent tastes?

A) Full insurance will be chosen from a full menu of actuarily fair insurance if tastes are risk averse.
B) No insurance will be chosen if the menu of insurance contracts is actuarily unfair and tastes are risk averse.
C) No insurance will be chosen if the menu of insurance contracts is actuarily unfair and tastes are risk-neutral.
D) (a) and (b) are true.
E) (a) and (c) are true.
F) (b) and (c) are true.
G) All of the above.
H) None of the above