In the automobile insurance market, adverse selection occurs when
A) drivers with greater risks buy a policy with large deductibles.
B) drivers with greater risks buy a policy with no deductibles.
C) uninsured drivers drive recklessly.
D) insured drivers drive recklessly.
B
Economics
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If the government decreases spending and taxes by 1,000 units and the marginal propensity to consume is .9, then
a. more information is needed. b. output will decrease by 900. c. output will decrease by 10,000. d. output will increase by 10,000.
Economics
In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:
A. inventory is accumulated. B. inventory is unchanged. C. employment decreases. D. employment increases.
Economics