The Purpose of an Assigned Risk Pool Is To

question 114

Multiple Choice

The purpose of an assigned risk pool is to:

• A) provide insurance for poor drivers.
• B) reduce medical costs associated with auto accidents.
• C) take unsafe drivers off the road.
• D) reduce auto insurance premiums with state regulation.
• E) offer premium discounts to safe drivers.

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Definitions:

Linear Demand Curve

A graphical representation that shows a straight-line relationship between the price of a good and the quantity demanded.

Profit-Maximizing

The strategy employed by a business to identify the optimum price and quantity of production for maximizing earnings.

Price-Elastic

A term that describes how sensitive the demand for a good or service is to changes in its price; high elasticity means demand changes significantly with price changes.

Microsoft

A multinational technology company known for its software products, including the Windows operating system and the Office suite.