Which of the Following Statements Is Correct

question 72

Multiple Choice

Which of the following statements is correct?

• A)A high-risk person is more likely to apply for insurance than a low-risk person because a high-risk person would benefit more from insurance protection.
• B)A low-risk person is more likely to apply for insurance than a high-risk person because a low-risk person would benefit more from insurance protection.
• C)Insurance companies can fully guard against the problem of adverse selection,but they cannot fully guard against the problem of moral hazard.
• D)Insurance companies can fully guard against the problem of moral hazard,but they cannot fully guard against the problem of adverse selection.

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Definitions:

Manager

An individual responsible for directing and overseeing the work of others, making decisions, and ensuring the achievement of organizational goals.

Work Structures

The organized layout of tasks, responsibilities, and systems within a workplace, designed to achieve efficient operation and fulfill the organization’s goals.

Goals and Objectives

Targets and benchmarks that are set to guide actions and measure performance, often delineating the specific outcomes or achievements desired.

Job Satisfaction

The degree of satisfaction workers experience regarding their job, impacting their output and general health.