An Insurance Company Is Likely to Attract Customers Like Clancy

question 56

Multiple Choice

An insurance company is likely to attract customers like Clancy who want to purchase insurance because he knows better than the company that he is more likely to make a claim on a policy.What is the term used to describe the situation above?

• A)moral hazard
• B)adverse selection
• C)asymmetric information
• D)economic irrationality

Understand the concept of balance and sustainability in socio-economic development and how collaboration among stakeholders is crucial for achieving sustainable business initiatives.

Know the role of businesses, communities, and governments in scaling sustainable business practices and making them profitable.

Analyze the challenges and criticisms related to implementing universal standards in sustainability across different nations.

Examine the implications of various Waves of change in socio-economic development for sustainability and how they drive organizational and societal transitions to sustainability.

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Definitions:

Positive Aspects

The beneficial or advantageous features of a situation, person, or object.

Unbalanced Relationship

A relationship where there is an unequal distribution of effort, emotion, or power between the parties involved.

Married Couple

Two individuals united by marriage, forming a legal and social partnership recognized by various institutions.

Festinger

Refers to Leon Festinger, known for cognitive dissonance theory, which suggests that we have an inner drive to hold all our attitudes and beliefs in harmony and avoid disharmony or dissonance.