If Those Who Are Most Willing to Bear Risk End

question 96

Multiple Choice

If those who are most willing to bear risk end up bearing it, then we say that the insurance market is:

• A)in equilibrium.
• B)efficient.
• C)equitable.
• D)showing signs of moral hazard.

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Definitions:

Brainstorming

A collaborative idea-generating activity aimed at finding a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its members.

Nominal Group Technique

Nominal Group Technique is a structured method for group brainstorming that encourages contributions from all participants, often used in decision-making.

PDCA

"Plan-Do-Check-Act," a four-step management method used in business for the control and continuous improvement of processes and products.

Cyclical Process

A process that repeats in a series of cycles, where the end of one cycle is the beginning of the next, common in natural and economic systems.