Which of the Following Statements Is (Are) TRUE

question 95

Multiple Choice

Which of the following statements is (are) TRUE?
I. Moral hazard can either increase or decrease the likelihood of an insurance claim.
II. Moral hazard is the result of asymmetric information.
III. Insurance coverage sets up moral hazard because people don't respond to the incentives offered by the coverage.

• A) I
• B) I and II
• C) III
• D) II

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Definitions:

Self-Fulfilled Person

A self-fulfilled person is someone who has realized their own potential and desires, leading to a deep sense of satisfaction and completeness in life.

Mental Anguish

Intense psychological pain or distress often resulting from experienced trauma or stress.

Needs Progression

The concept that individuals move through a series of hierarchical needs, starting with basic physiological needs to higher-level psychological needs, as they are progressively satisfied.

Survival

Survival refers to the ability to continue living or existing, often despite adversity or challenging circumstances.