(Consider This) Which of the Following Statements About Insurance and Risk

question 243

Multiple Choice

(Consider This) Which of the following statements about insurance and risk is true?

• A) Insurance inhibits economic growth and investment by discouraging risk-taking.
• B) Insurance transfers risk from those with a high tolerance for risk to those with a low tolerance for risk.
• C) Insurance companies always earn profits because insurance premiums always exceed the payout for insured events.
• D) Insurance transfers risk from those with a low tolerance for risk to those with a higher tolerance for risk.

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Definitions:

Aerial Perspective

A technique in art and photography that uses the way atmosphere affects human perception of distance to create a sense of depth.

Motion Parallax

Motion Parallax is an optical illusion where objects closer to the observer appear to move faster than objects further away when the observer moves their head or body side-to-side.

Perceptual Constancy

The perceptual phenomenon where the perception of objects remains relatively unchanged under different conditions such as changes in illumination, distance, or perspective.

Figure-ground Distinction

Refers to the visual perception ability to separate objects (figure) from their background (ground), allowing focus on specific elements in a field of perception.