According to the textbook, one of the most fundamental purposes of insurance is to
A. eliminate risk entirely for everyone.
B. transfer risk from risk seeking people to risk neutral people.
C. transfer risk from those who wish to avoid it to those who are willing to bear it (for a fee).
D. eliminate risk entirely, while tolerating uncertainty.
Answer: transfer risk from those who wish to avoid it to those who are willing to bear it (for a fee).
Economics
You might also like to view...
The word oligopoly means
A) elastic demand. B) few sellers. C) independent action. D) interdependent selling. E) predatory pricing.
Economics
The L in OLI theory stands for loyalty, and this factor makes it more difficult for firms to substitute foreign operations for domestic as they fear a loss of sales due to negative publicity
Indicate whether the statement is true or false
Economics