Insurance is possible and can be profitable because of
A) private information.
B) adverse selection.
C) moral hazard.
D) consumers are risk aversion.

Name: Insurance is possible and can be profitable because of A) private information. B) adverse selection. C) moral hazard. D) consumers are risk aversion.
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Question

Quizplus · Accepted Answer

Insurance is possible and profitable because consumers are risk-averse, meaning they prefer to pay a premium to avoid the uncertainty of potential large losses.

Insurance Is Possible and Can Be Profitable Because of