If insurance is available on an activity
A) more of that activity will occur.
B) less of that activity will occur.
C) investors will be less likely to hedge.
D) it increases the risk of engaging in that activity.

Question

Quizplus · Accepted Answer

When insurance is available on an activity, it reduces the perceived risk associated with that activity, leading to more people engaging in the activity. This is because individuals feel more secure and protected knowing that they are covered in case something goes wrong.

If Insurance Is Available on an Activity