People with a Bad Driving Record Find It Difficult to Buy

question 124

Multiple Choice

People with a bad driving record find it difficult to buy automobile insurance because insurance companies fear that ___________ may happen if they raise the premiums.

• A) adverse selection
• B) moral hazard
• C) risk aversion
• D) none of the statements associated with this question are correct

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Definitions:

Compiler Efficiency

A measure of how effectively a compiler translates high-level code into optimized machine code, impacting the performance and size of the resulting executable.

Abstract Class Constructor

A constructor in an abstract class, which cannot be instantiated directly but can be called by constructors of its subclasses.

Object Creation

The process of instantiating a class to form a new object in object-oriented programming.

Ancestor Class Constructor

A constructor call for a superclass in an inheritance hierarchy, used to initialize the state of an ancestor class before the derived class.