In the Context of Insurance, Everyone Typically Has to Pay

question 75

Multiple Choice

In the context of insurance, everyone typically has to pay a higher premium because of:

• A)risk pooling.
• B)diversification.
• C)risk aversion.
• D)adverse selection.

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Definitions:

Classical Conditioning

An educational technique that pairs two stimuli together repeatedly; a response that at first occurs due to the second stimulus alone eventually results from the first stimulus.

Social Learning Theory

The theory emphasizing that learning occurs within a social context, and knowledge is acquired through observing others in the social environment.

Observational Learning

A method of gaining behaviors by observing and mimicking the actions of others.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, leading to changes in voluntary behavior.