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.

---

Definitions:

Hawthorne Studies

A series of research activities conducted in the 1920s and 1930s that explored how different working conditions affected worker productivity, leading to insights about the social and emotional aspects of the workplace.

Human Relations Movement

An early management theory focusing on the social aspects of the workplace and employee welfare.

Employable System

A system or structure designed to support and enhance the employability of individuals, often through training and education.

Interdependent Characteristics

Traits or features that rely on each other to function effectively, often seen in team dynamics or systems thinking.