According to the theory of propitious selection:
a. risk-neutral people are more likely to opt for insurance coverage.
b. risk-averse people are more likely to opt for insurance coverage.
c. high-risk people submit large claims for insurance coverage.
d. high-risk people submit smaller claims for insurance coverage.
B
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In the aggregate expenditure model, ________ has both an autonomous component and an induced component
A) planned investment spending B) government spending C) consumption spending D) net export spending
Government policies such as price controls, rent controls, and quantity restrictions have the effect of
A) promoting the attainment of an unhindered market equilibrium. B) allowing quantity demanded to adjust to equality with aggregate supply. C) creating excess quantities demanded or excess quantities supplied. D) pushing prices to market clearing levels more rapidly than private market forces.