If reckless drivers are more likely to buy automobile insurance than safe drivers are
A) a moral hazard has occurred.
B) adverse selection has occurred.
C) the market for insurance is efficient.
D) then automobile insurance will be fairly priced.
B
Economics
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If the U.S. interest rate falls relative to the British interest rate,
a. the U.S. demand for pounds will not change b. the U.S. demand for pounds will decrease c. the U.S. demand for pounds will increase d. there will be a rightward movement along the U.S. demand curve for pounds e. there will be a leftward movement along the U.S. demand curve for pounds
Economics
External costs are the difference between
A. Benefits and costs. B. Average and marginal costs. C. Marginal social benefits and marginal social costs. D. Social costs and private costs.
Economics