The Idea That One Pays a Relatively Small Known Cost

question 254

Multiple Choice

The idea that one pays a relatively small known cost for protection against an uncertain and much larger cost is the basic principle behind

• A)insurance.
• B)copayment.
• C)moral hazard.
• D)asymmetric information.

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Definitions:

Histogram

A histogram is a graphical representation of the distribution of numerical data, where the data is divided into intervals (bins), and the frequency of data within each bin is depicted by the height of the bar.

Frequency Distribution

An organized tally of the frequency at which certain values appear in a set of data.

Histogram

A graphical representation of the distribution of numerical data, where the data is divided into bins or intervals, and the frequency of the data within each bin is depicted.

Frequency Distribution

A summary of how often each different value occurs in a dataset, typically represented in a table or graph.