The best possible pricing scheme in this figure would:
A) encourage high-risk individuals to obtain full coverage.
B) encourage all individuals to obtain full coverage.
C) establish a single premium for all individuals.
D) encourage only low-risk individuals to buy any insurance.
E) result in no coverage purchased by low- or high-risk individuals.

Question

The best possible pricing scheme in this figure would: 
A) encourage high-risk individuals to obtain full coverage. 
B) encourage all individuals to obtain full coverage. 
C) establish a single premium for all individuals. 
D) encourage only low-risk individuals to buy any insurance. 
E) result in no coverage purchased by low- or high-risk individuals.

Quizplus · Accepted Answer

The Answer of The best possible pricing scheme in this figure would: 
A) encourage high-risk individuals to obtain full coverage. 
B) encourage all individuals to obtain full coverage. 
C) establish a single premium for all individuals. 
D) encourage only low-risk individuals to buy any insurance. 
E) result in no coverage purchased by low- or high-risk individuals.

The Best Possible Pricing Scheme in This Figure Would