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

Question

Quizplus · Accepted Answer

The insurance market is efficient when those who are most willing to bear risk end up bearing it. This ensures that premiums are set according to risk and that resources are allocated efficiently.

If Those Who Are Most Willing to Bear Risk End