Which of the following statements best explains why some people…
Question 11b of 25 - Utility and risk-aversion
- Maximum Attempts: 1
- Question Type: Multiple Choice
- Maximum Score: 2
- Question: Which of the following statements best explains why some people are more committed to saving for retirement than other people?
- Different people look at future risks differently.
- Some people don't think they'll need to retire.
- Not everyone will need money in order to survive during retirement.
- Many people move from one job to another many times before retiring.
The correct answer is: Different people look at future risks differently. The commitment to save for retirement is partly a result of a person's level of risk aversion.
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