(Consider This) Which of the Following Statements About Insurance and Risk

question 243

Multiple Choice

(Consider This) Which of the following statements about insurance and risk is true?

• A) Insurance inhibits economic growth and investment by discouraging risk-taking.
• B) Insurance transfers risk from those with a high tolerance for risk to those with a low tolerance for risk.
• C) Insurance companies always earn profits because insurance premiums always exceed the payout for insured events.
• D) Insurance transfers risk from those with a low tolerance for risk to those with a higher tolerance for risk.

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Definitions:

Open Wound

A wound characterized by a disruption in the continuity of body tissue, which may affect the skin internally or externally.

Scar Tissue

Fibrous tissue that forms over a wound as it heals, replacing normal skin or organ tissue but not its full function.

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The total number of calories consumed by an individual through food and drink, critical for determining energy balance and nutritional health.

Swab Culture

A diagnostic test that involves collecting a specimen with a swab for the purpose of detecting pathogens.