Which of the Following Statements Is Correct

question 72

Multiple Choice

Which of the following statements is correct?

• A)A high-risk person is more likely to apply for insurance than a low-risk person because a high-risk person would benefit more from insurance protection.
• B)A low-risk person is more likely to apply for insurance than a high-risk person because a low-risk person would benefit more from insurance protection.
• C)Insurance companies can fully guard against the problem of adverse selection,but they cannot fully guard against the problem of moral hazard.
• D)Insurance companies can fully guard against the problem of moral hazard,but they cannot fully guard against the problem of adverse selection.

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Definitions:

Dysrhythmias

Abnormal heart rhythms that can range from harmless to life-threatening, characterized by irregular electrical activity in the heart.

Blood Warmer

A device used in medical settings to warm stored or donated blood to body temperature before transfusion to prevent hypothermia.

Antigen

A substance that the immune system recognizes as foreign and triggers an immune response against.

Computed Tomography

A sophisticated imaging technique that uses computer-processed combinations of many X-ray measurements taken from different angles to produce cross-sectional images of specific areas of a scanned object, allowing for detailed inside views without cutting.