People with Few Valuables Won't Want Property Insurance

question 11

Multiple Choice

People with few valuables won't want property insurance. This is an example of a(n) _____ problem for insurance companies.

• A) adverse selection
• B) moral hazard
• C) both of the above
• D) neither of the above

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Definitions:

Herding

The act of grouping together, often used in the context of animals or people moving in a group.

Agriculture

The science, art, and practice of cultivating the soil, growing crops, and raising livestock for human use and consumption.

Third Force

A term in psychology referring to the humanistic approach, which emphasizes individual potential and stresses the importance of growth and self-actualization.

Human Behavior

The range of actions and mannerisms made by individuals in conjunction with themselves or their environment, which includes the other systems or organisms around as well as the physical environment.