Which of the Following Are Reasons Why Larger Amounts of the Population

question 13

Multiple Choice

Which of the following are reasons why larger amounts of the population fail to purchase long-term care insurance?

• A) Adverse selection
• B) Moral hazard
• C) Intertemporal risk
• D) Both a and b
• E) All of the above

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Definitions:

Contribution Margin

The contribution margin is the sales revenue minus the variable costs. It shows how much revenue contributes to covering the fixed costs and generating profit.

Fixed Corporate Costs

Expenses that do not vary with production levels, including salaries of executives, rent, and insurance.

Fixed Costs

Expenses that do not change with the level of output or sales over a specific period, such as rent, salaries, or insurance.

Financial Advantage

The gain or benefit obtained in financial terms, often seen in the context of investments or business operations.