It Would Be Costly to Provide Wage Insurance Because of the ________

question 36

Multiple Choice

It would be costly to provide wage insurance because of the ________ problem.

• A) moral hazard
• B) adverse selection
• C) Texas hedge
• D) actuarial error

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Definitions:

Biological Conditions

Physical states that affect the function and behavior of organisms, often relating to health and disease states.

Drive Reduction Theory

A motivational theory that argues the primary goal of all behavior is the reduction of drives, which are basic bodily needs.

Motivation

The method that starts, steers, and sustains behaviors aimed at achieving goals.

Reinforcement Value

The degree to which a specific outcome or reward increases the likelihood of a behavior occurring again.