In the Context of Insurance,moral Hazard Refers To

question 24

Multiple Choice

In the context of insurance,moral hazard refers to:

• A) the tendency for people to behave in a riskier way after they have acquired insurance.
• B) the tendency for high-risk individuals to seek out more insurance than low-risk individuals.
• C) when people organize themselves in a group to collectively absorb the cost of the risk faced by each individual.
• D) when risks are shared across many different assets or people, reducing the impact of any particular risk on any one individual.

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Definitions:

Action Potential

A rapid increase and subsequent decrease in voltage across a cellular membrane, allowing neurons and muscle cells to communicate and react to stimuli.

Convergence

The evolutionary process where organisms from different evolutionary backgrounds develop similar traits or features in response to similar environmental challenges or functional needs.

Typical Neuron

A cell of the nervous system, characterized by its ability to receive and transmit electrical signals throughout the body.

EPSPs

Excitatory Postsynaptic Potentials, which are temporary increases in postsynaptic membrane potential caused by the flow of positively charged ions into the postsynaptic cell.