Pure risk may be said to create an economic burden in all except which of the following ways?
A) reserve funds may be necessitated that may not yield the highest rate of return available,
B) pure risk can result in feelings of mental unrest and worry that can drain human energies
C) pure risk results in gambling, which is a destructive social force
D) pure risk may deprive society of certain goods or services determined to bear excessive risk.

Question

Quizplus · Accepted Answer

Pure risk involves situations that can only result in a loss or no change; there is no opportunity for gain. Gambling, on the other hand, is considered speculative risk, where there is a chance for both loss and gain. Choices A, B, and D describe ways pure risk can create an economic burden, such as necessitating reserve funds, causing mental unrest, and depriving society of goods or services due to excessive risk.

Pure Risk May Be Said to Create an Economic Burden