The Idea That Insurance Is Purchased More Frequently by Those

question 38

Multiple Choice

The idea that insurance is purchased more frequently by those who are more costly for companies to insure is called

• A) adverse selection.
• B) statistical discrimination.
• C) risk aversion.
• D) the expected value.
• E) a fair gamble.

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Definitions:

Hetch Hetchy

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An influential Scottish-American naturalist, author, and early advocate for the preservation of wilderness in the United States.

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An environmental organization in the United States dedicated to the conservation of natural environments and the promotion of sustainable energy sources.

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