Exam (elaborations)
EC248 Exam Review|Questions Solved 100% Correc
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Chapter 7 - risk because there is a fear of the unknown - forfeiting income in good times to get money in bad times - Demand for Insurance U'(1)>0, utility increases with income U''(1)<0, marginal utility for income is declining - Risk Aversion - probability of sickness= P (between 0 and...
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