PT124.S1.Q12 > Question

SECTION 1 · lr

Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7 Question 8 Question 9 Question 10 Question 11 Question 12 Question 13 Question 14 Question 15 Question 16 Question 17 Question 18 Question 19 Question 20 Question 21 Question 22 Question 23 Question 24 Question 25

SECTION 2 · lr

SECTION 3 · lr

SECTION 4 · rc

PASSAGE 1

Question 1 Question 2 Question 3 Question 4 Question 5 Question 6

PASSAGE 2

Question 7 Question 8 Question 9 Question 10 Question 11 Question 12 Question 13 Question 14

PASSAGE 3

Question 15 Question 16 Question 17 Question 18 Question 19

PASSAGE 4

Question 20 Question 21 Question 22 Question 23 Question 24 Question 25 Question 26 Question 27

Melinda describes how insurance reduces an individual’s risk by spreading it among many others. John disagrees on the grounds that insurance doesn’t reduce one’s risk of an incident.

In describing how insurance distributes risk, Melinda implicitly refers to financial risk. That is to say, many people each pay a relatively small fee to have an insurance policy that protects them from having to pay a massive sum should an insured incident occur.

Jack’s response indicates that he misunderstands what kind of risk Melinda is referring to.

Jack disagrees with Melinda’s statement that hazard insurance decreases one’s risk—he doesn’t refer to how that risk would be decreased (by judiciously spreading it). He simply misunderstands what kind of risk Melinda is referring to.

Jack disagrees with Melinda’s statement that hazard insurance decreases one’s risk—he doesn’t refer to how that risk would be decreased (by spreading among many policyholders). He simply misunderstands what kind of risk Melinda is referring to.

This describes Jack’s misunderstanding. Melinda implicitly refers to financial risk, but Jack’s statements are about the risk of an insured incident occurring (a fire).

Jack disputes Melinda’s claim that insurance decreases risk, but he uses the word “decreases” in the same way that she does. He simply misunderstands what kind of risk is decreased by insurance.

Jack gives a specific example of an insurance policy covering a potential hazard—a housefire—so he doesn’t trade on any ambiguity in this term.

PrepTest 124 - Section 1 - Question 12

Difficulty

Analysis

Answer Popularity

Question history

Confirm action