The Insurance on Carlos' Car Is Due to Expire, and He

question 79

Multiple Choice

The insurance on Carlos' car is due to expire, and he wants to renew it with a different company. He met different insurance agents to collect information about individual policies. In this scenario, Carlos meets with different insurance agents because:

• A) his involvement is low.
• B) of the information format affecting the opportunity to process information.
• C) his consideration set has only one item.
• D) of the perceived low benefits relative to the costs of searching information.
• E) of the number of items being chosen.

---

Definitions:

Plums

A type of fruit belonging to the genus Prunus, known for its juicy and sweet flesh.

Distinguish

To recognize or point out the differences between two or more things or to identify as distinct.

Moral Hazard

A situation where one party engages in risky behavior or lacks incentive to guard against risk because another party bears the consequences of that behavior.

Risk Efficiently

The optimal management of risk to maximize returns relative to the level of risk taken.