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The Opportunity to Engage in Pooling Shifts the _____ Curve

question 95

Multiple Choice

The opportunity to engage in pooling shifts the _____ curve of insurance to the right;insurance companies will take on _____ risk and charge a _____ premium than without pooling.


Definitions:

Law of Effect

A principle of behavior that states responses followed by satisfaction will become more likely to occur, while those followed by dissatisfaction will become less likely.

Fear

An emotional response to a perceived threat, which serves as a basic survival mechanism by triggering the fight or flight response.

Generalization

The process by which the brain applies learned information from specific instances to similar situations or stimuli.

Punished Behaviors

Behaviors that have been discouraged or corrected through negative consequences or punishments.

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