If those who are most willing to bear risk end up bearing it,then we say that the insurance market is:
A)experiencing adverse selection.
B)efficient.
C)equitable.
D)showing signs of moral hazard.

Question

Quizplus · Accepted Answer

When those most willing to bear risk end up bearing it, the insurance market is considered efficient because it means that risks are being allocated to those best able or most willing to manage them. This is a fundamental principle of market efficiency, where resources (in this case, risk-bearing capacity) are allocated to those who value them the most.

If Those Who Are Most Willing to Bear Risk End