The Best Possible Pricing Scheme in This Figure Would

question 9

Multiple Choice

The best possible pricing scheme in this figure would:

• A) encourage high-risk individuals to obtain full coverage.
• B) encourage all individuals to obtain full coverage.
• C) establish a single premium for all individuals.
• D) encourage only low-risk individuals to buy any insurance.
• E) result in no coverage purchased by low- or high-risk individuals.

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Definitions:

Grass

Plants belonging to the family Gramineae that are common worldwide in varied habitats and used for lawns, food, and fodder.

Proposition

A statement or assertion expressing a judgment or opinion that can be either true or false.

Playoffs

A series of games or matches to determine a championship or a team's ranking at the end of a league season.

Pillsbury Dough Boy

A fictional character and advertising mascot for the Pillsbury Company, known for his giggle when poked in the belly.