The Value of Insurance Comes from Its Ability to Reduce

question 63

Multiple Choice

The value of insurance comes from its ability to reduce the cost of ________ for the firm.

• A)adverse selection
• B)vertical integration
• C)fraud
• D)market imperfections
• E)capital

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Definitions:

Autonomy

The capacity to make an informed, uncoerced decision; in psychology, it refers to the sense of self-directedness and independence.

Basic Trust

A concept introduced by Erik Erikson referring to an essential trustfulness of others as well as a fundamental sense of one's own trustworthiness, developed in infancy.

Initiative

Initiative pertains to the willingness to take the first step or action in a course of actions, often indicative of leadership or creativity.

Myers-Briggs Type Indicator

A personality assessment tool that categorizes individuals into 16 distinct personality types based on preferences in four dimensions: extraversion vs. introversion, sensing vs. intuition, thinking vs. feeling, and judging vs. perceiving.