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:

Interrole Conflict

A conflict that arises when the expectations of different roles that an individual holds are incompatible or in opposition.

Defining Moments

Pivotal situations or decisions in a person’s life or career that significantly impact their future direction and personal narrative.

Displacement

An aggressive mechanism in which an individual directs his or her anger toward someone who is not the source of the conflict.

Bending Moments

A measure of the bending effect on an element due to external forces or moments applied to it, crucial in the design and analysis of structures.