Question: 2a. What are the differences between risk aversion and loss aversion? Can someone exhibit all of those behavior? Explain (6 marks) 2b. Earthquake is catastrophic.

2a. What are the differences between risk aversion and loss aversion? Can someone exhibit all of those behavior? Explain (6 marks)

2b. Earthquake is catastrophic. Why do we have earthquake insurance in some countries? (4 marks) Word limit: 300 words

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