Final answer:
Risk-averse individuals are most likely to pay extra for security to avoid uncertainties and ensure the fulfillment of their needs in times of economic risks. They value predictability and would invest in measures that remove unpleasant risks from their lives.
Step-by-step explanation:
The type of individual who would be willing to pay extra to have the security of knowing that unpleasant risks would be removed from their lives is A) Risk-averse individuals. These are people who prefer to avoid uncertainty and are more comfortable with a predictable environment. Given that a country with a high level of economic security alleviates the fear related to the occurrence of economic risks over which individuals have little control, risk-averse individuals would find value in paying more to ensure their needs are met during adverse events like natural disasters, wars, or widespread unemployment.
Moral hazard is an important concept to consider, as it refers to the tendency of individuals engaging in riskier behavior when they have insurance. Knowing they're covered, they might be less diligent in preventive measures, which isn't typically the behavior of risk-averse individuals. Instead, they would be willing to invest in services or insurance policies that provide more comprehensive protection and peace of mind.