The Phenomenon of Selecting an Insurer That Charges Lower Rates

question 23

Multiple Choice

The phenomenon of selecting an insurer that charges lower rates for a specific risk exposure is known as:

• A)moral hazard.
• B)pareto efficiency.
• C)adverse selection.
• D)morale hazard.
• E)self serving bias.

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Definitions:

Prosocial Behavior

Refers to voluntary actions that are intended to help or benefit another individual or group of individuals.

Modern Racism

A form of prejudice that is subtler than overt racism, often manifesting as denying the existence of racial discrimination or expressing indirect racial prejudices.

Implicit Attitudes

Attitudes that are unconsciously held and can influence feelings and behavior without the individual being consciously aware of them.

Explicit Attitudes

Attitudes and beliefs that are consciously held and can be directly reported by individuals.