In Terms of Insurance,which of the Following Statements Is Explained

question 86

Multiple Choice

In terms of insurance,which of the following statements is explained by adverse selection?

• A) A person with riskier characteristics tends to be more likely to buy insurance.
• B) A person who is more risk-averse tends to be more likely to buy insurance.
• C) Insurance companies charge risk-averse customers a higher premium, since they need more peace of mind.
• D) None of these statements is true.

Recognize the role and necessity of control mechanisms, such as the double-blind technique, in research to minimize biases.

Identify the significance of extraneous variables and methods to control or account for their influence in experiments.

Understand the impact of the placebo effect and its implications for interpreting research findings.

Grasp the basics and limitations of various brain-imaging techniques and their role in psychology.

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Definitions:

GI Bill

A law passed in 1944 that provided a range of benefits for returning World War II veterans, including educational grants, home loan guarantees, and unemployment compensation.

College Tuition

The fee that colleges and universities charge for instruction and attendance.

Low-Interest Home Loans

Mortgage loans offered to borrowers at rates lower than the typical market interest, often supported by government programs to encourage home ownership.

Mathematics

The abstract science of quantity, structure, space, and change, utilizing symbols and logical reasoning.