Question

(0)

A firm decides to self-insure their workers compensation program rather than purchase market insurance. By making this decision, which of the following statements is (are) TRUE (other things equal)?

This decision reduces moral hazard on the part of the firm

This decision increases the cost of risk for this firm

This decision reduces the cost of risk for this firm

This decision has no impact on the cost of risk for this firm

A and C only

Answer 1

I think it's, This decision reduces moral hazard on the part of the film, and This decision reduces the cost of risk for this firm