All of the Following Are Benefits to Society That Result

question 7

Multiple Choice

All of the following are benefits to society that result from insurance EXCEPT

• A)less worry and fear.
• B)elimination of moral hazard.
• C)indemnification for loss.
• D)loss prevention.

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Definitions:

External Benefit

A positive effect experienced by individuals or groups who are not directly involved in an economic transaction or activity.

Market Price

The existing rate at which an item or service may be traded or acquired in a commercial setting.

Market Output

The total amount of goods or services produced and offered for sale by businesses in a particular market.

External Costs

Costs that are not borne by the producer or consumer of a good or service but by society, such as pollution.