When states make car insurance mandatory for all drivers, it
A) raises rates for everyone because it brings bad drivers into the pool.
B) raises rates for high-risk drivers.
C) may lower rates for all drivers to the extent that it keeps low-risk drivers in the pool.
D) prevents high-risk drivers from "selecting out," to the detriment of low-risk drivers.
E) increases the amount of information available to insurers about the population.
C
You might also like to view...
Refer to the table below. If the market price for the firm's product is $80, the firm will:
The following table shows cost data for a firm that is selling in a purely competitive market.
A. Produce 4 units
B. Produce 5 units
C. Produce 6 units
D. Shut down
The 1974 federal legislation that exempted employers from certain state laws governing health insurance was:
a. HIPAA. b. CON. c. SCHIP. d. ERISA. e. COBRA.