Explain why risk can be insured against but uncertainty cannot
What will be an ideal response?
The provider of insurance policies can assign probabilities to the occurrences of insurable events and calculate premium rates to charge. With uncertainty, no probabilities can be attached to such events and it isn't possible to construct the appropriate premium rates.
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Which of the following is an advantage for the host country of a multinational corporation?
(A) Greater political power. (B) Greater income from tariffs. (C) Greater protective tariffs. (D) Greater employment opportunities.
If the price of a product being sold in a perfectly competitive market decreases
A) the MRP curve shifts to the left. B) the MRP curve shifts to the right. C) the MFC curve shifts to the right. D) the MFC curve shifts to the left.