Multiple Choice
The idea of an insurance company "pooling" the risk means that
A) the risk is completely eliminated from society.
B) the insurance company requires buyers to pay a large deductible.
C) the risk is spread over a large population.
D) the insurance company insists on a pooling equilibrium.
E) moral hazard and adverse selection are eliminated.
Correct Answer:
Verified
Correct Answer:
Verified
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