Which Statement Is TRUE If the Insurance Market Is Efficient

question 90

Multiple Choice

Which statement is TRUE if the insurance market is efficient?

• A) The deductibles eliminate moral hazard.
• B) Society as a whole engages in less risky behaviour.
• C) It transfers risk from those who most want to get rid of it to those least bothered by the risk.
• D) Premiums are always kept to the level of a fair insurance policy.

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Definitions:

Environmental Movement

A diverse scientific, social, and political movement for addressing environmental issues and advocating for the protection of the environment through changes in public policy and individual behavior.

Development

The process of economic growth, expansion, or realization of regional potential, emphasizing improvements in health, education, and industry.

Early Television

The initial period of television technology development and broadcast, beginning in the early 20th century.

American Consumer Culture

Refers to the pattern of consumption, influenced by advertising and mass media, that became prevalent in the United States during the 20th century, promoting constant purchasing and valuing goods for personal satisfaction and status.