You have a car insurance policy with an annual premium of $$1,000.$ You declined to purchase an extended warranty on your microwave for $$20,$ a fraction of the price of the car insurance. Are you being inconsistent regarding your risk aversion?

$$ Yes, because both types of insurance protect your financial well$-$being.

No$,$ because the microwave policy is more likely to be actuarially fair.

No$,$ because the financial impact of replacing your car is much greater than the impact of replacing your microwave.

Yes, but only if the microwave costs less than $$20.$