Question: 1. Define risk aversion in the utility-income model . 2. According to your text, what is the difference between a fair insurance contract and an

1. Define risk aversion in the utility-income model.

2. According to your text, what is the difference between a fair insurance contract and an unfair insurance contract?

3. Define Information Asymmetry?

4. What conditions are met if a contract is in equilibrium?

5. Define Moral Hazard.

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