How do individuals decide how much they are willing to pay for insurance?
Explain how microeconomics provides answers to this, outlining key insights from microeconomics theory on Choice under Uncertainty.
How and why might an individual’s attitude to risk affect this decision?
How and why might an individual’s life situation (e.g. age) affect this decision?
With respect to parts b) and c), provide interesting illustrative example(s) to compare and contrast different outcomes under different scenarios.
