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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In Figure 5-2, consumer’s surplus is measured by the area
A. ABC. B. OBCD. C. OACD. D. DCE.
Economics
A positively sloped aggregate supply curve reflects
A. The idea that greater production lowers profit margins, which raises quantity demanded. B. The decrease in the real value of money as the price level rises. C. None or the other choices. D. The rising costs associated with increased capacity utilization.
Economics