When Bad Drivers Line Up to Purchase Collision Insurance,automobile Insurers

question 34

Multiple Choice

When bad drivers line up to purchase collision insurance,automobile insurers are subject to the

• A)moral hazard problem.
• B)adverse selection problem.
• C)assigned risk problem.
• D)ill queue problem.

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Definitions:

Classical Conditioning

A training method where a response initially triggered by a second stimulus becomes associated with a first stimulus, following their repeated pairing.

Instrumental Conditioning

A learning process in which behavior is modified by the consequences of the behavior; also known as operant conditioning.

Uncontrollably Smile

Describes the involuntary act of smiling without the ability to stop, often triggered by intense joy, nervousness, or social discomfort.

Conditioned Responses

Pertains to automatic reactions developed through conditioning, where a stimulus elicits a specific response due to prior learning.