Insurance works because
A) all policyholders pay in according to risks and all then receive a pay out in return.
B) all policyholders pay in according to risks and then receive a pay out only if they incur a loss.
C) all policyholders pay in according to risks and nobody receives any pay out.
D) only high risk policyholders pay in while everyone is entitled to a pay out.
B
You might also like to view...
The real output of the economy under conditions of full employment
A) is long-run aggregate demand. B) is long-run aggregate supply. C) happens only when there is no inflation. D) is determined by the real-balance effect.
Refer to the figure above. If the relative price of S were to increase, then the price line would
A) shift out in a parallel fashion. B) shift in in a parallel fashion. C) become steeper. D) become flatter.