Final answer:
Exposure to accidents, injuries, and losses pertains to economic risks and adverse events that occur in the workplace. Employees face dangers such as workplace injuries, with insurance offering a way to manage these unpredictable risks despite imperfect information.
Step-by-step explanation:
Economic risks are incidents over which individuals have very little control, such as natural disasters, wars, or massive unemployment, affecting their ability to provide for themselves and their families. Adverse events refer to unfortunate incidents such as workplace injuries or illnesses that impact an employee's life and work ability.
Workplace dangers can range from fire hazards in textile factories to life-altering injuries from machines. Occupational exposures can also happen through absorption via skin or inhalation in certain work environments. With the unpredictability of such events, insurance comes into play to manage these risks. However, all insurance involves imperfect information, as events cannot be predicted with certainty and risk estimation is challenging due to variability in individual behaviors and characteristics coupled with luck.