Question

why do insurance companies typically charge higher premiums to new drivers?
○ to encourage them to take public transportation
○ because they are statistically more likely to have accidents
○ to maximize their profits
○ because new drivers have less disposable income

question 2 2 pts
what is a primary purpose of the social safety net programs?
○ to generate revenue for the government
○ to prevent people from falling into poverty
○ to increase employment rates
○ to regulate insurance companies

Explanation:

For the first question: Insurance companies base premiums on risk, and data shows new drivers have higher accident likelihood.
For the second question: Social safety net programs are designed to support vulnerable groups and keep them out of poverty.

Answer:

1. Because they are statistically more likely to have accidents
2. To prevent people from falling into poverty