The difference between Insurance and Gambling is that :

(2 Points)

1)None of the above

2)Gambling creates a new pure risk while insurance handles already existing speculative risk . in addition Gambling is socially productive in contrast of Insurance

3)Gambling creates a new speculative risk while insurance handles already existing pure risk . in addition gambling is Socially unproductive in contrast of insurance

4)Gambling is a technique for handling risk that are typically uninsurable while insurance Can reduce the objective risk