The Risk Associated with Inefficient Use of Inputs or Over-Provision

question 6

Multiple Choice

The risk associated with inefficient use of inputs or over-provision of services is

• A) An actuarial risk
• B) A utilization risk
• C) A cost risk
• D) A financial risk

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Definitions:

Wealth

The abundance of valuable resources or material possessions, or the control of such assets.

Flood

An overflow of water that submerges land that is usually dry, often caused by heavy rain, melting snow, or failure of a dam.

Expected Utility Maximizer

An economic principle that assumes individuals choose to maximize a utility function that represents their preferences under conditions of uncertainty.

Utility Function

An expression used in economics to model satisfaction or happiness derived from consuming goods and services, measuring consumer preferences.