An insurance company that writes automobile policies tries to separate safe drivers from risky drivers by offering policies that feature different deductibles and different premiums. This practice is best described as an example of

a. screening.
b. behavioral economics.
c. monitoring.
d. signaling.

a

Economics

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If the interest rate rises from 1 percent to 3 percent, the ________ decreases and the opportunity cost of holding money ________

A) demand for money; rises B) quantity of money demanded; rises C) quantity of money supplied; rises D) quantity of money demanded; falls E) quantity of money supplied; falls

Economics

Compared to corporations, businesses that are proprietorships

A) are far more numerous. B) account for a larger percentage of the economy's total revenue each year. C) can raise capital more cheaply. D) All of the above are correct answers.

Economics