Which Statement About the Mathematically Fair Price for Insurance Is

question 57

Multiple Choice

Which statement about the mathematically fair price for insurance is true?

• A) People who will pay no more than the mathematically fair price for insurance are considered to be risk neutral.
• B)People who will pay no more than the mathematically fair price for insurance are considered to be risk seeking.
• C)When everyone pays the mathematically fair price for insurance, subsidization is reduced or eliminated.
• D)The mathematically fair price is impossible to calculate.

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Definitions:

Talents and Abilities

Inherent skills and capacities that individuals possess, which can be developed and applied to various tasks or activities.

Productivity

The measurement of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Smelters

Facilities where metal is extracted from its ore through a process involving heating and melting.

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A formal organization in which each person has specific duties and responsibilities and is assigned to only one supervisor.