I want to explain me and the solution.also what different between utility and in

Question

I want to explain me and the solution.also what different between utility and income

As long as insurance is fair,

a.

Income from full insurance will always be less than income from partial insurance

b.

Utility from full insurance will always be less than utility from partial insurance

c.

Utility from full insurance will always be greater than utility from partial insurance

d.

Utility from full insurance will always be greater than Income from partial insurance

e.

Utility from partial insurance will always be less than income from full insurance

a.

Income from full insurance will always be less than income from partial insurance

b.

Utility from full insurance will always be less than utility from partial insurance

c.

Utility from full insurance will always be greater than utility from partial insurance

d.

Utility from full insurance will always be greater than Income from partial insurance

e.

Utility from partial insurance will always be less than income from full insurance

Explanation / Answer

C) UTILITY FROM FULL INSURANCE WILL ALWAYS BE GREATER THAN UTILITY FROM PARTIAL INSURANCE.

THE CUSTOMER IS ALWAYS PREFERS HE FULL INSURANCE BECAUSE IT DOMINATES PARTIAL INSURANCE WITH RESPECT TO LOWER PREMIUM FOR COVERING ONLY A PART OF LOSS.

UTILITY MEANS THE BENEFIT OR SATISFACTION DRIVEN FROM CONSUMING OR BUYING A PRODUCT OR SERVICE. INCOME ON THE OTHER HAND IS THE EARNINGS A PERSON GETS BY WORKING OR MAKING INVESTMENT.

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