2
QuizMultiple Choice

Insurance — Quiz

Question 2 • Economics

Most people prefer to pay health insurance premiums rather than pay out-of-pocket for medical expenses because

Answer
A
medical costs can be extremely high, and insurance is more affordable than paying out-of-pocket for a hospital stay.
B
people are cautious and believe they are less likely to get sick if they have health-insurance coverage.
C
doctors and hospitals always provide better care to people who have health insurance.
D
people still feel more secure with a health insurance policy, even though out-of-pocket costs are often lower.

Explanation

A serious illness or injury can lead to very large medical bills, such as the cost of a hospital stay. Paying regular insurance premiums helps protect people from having to cover those potentially enormous expenses all at once. Insurance does not make people less likely to get sick, and it does not guarantee better care, so A is the best choice.

AI-written and checked against the verified answer.

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