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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The real interest rate is 4 percent a year. When the inflation rate is zero, the nominal interest rate is approximately ________ percent a year; and when the inflation rate is 2 percent a year, the nominal interest rate is approximately ________

percent a year. A) 0; 2 B) 4; 6 C) 6; 8 D) 6; 4

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Refer to Table 15.3. Based on the data in the table, fiscal policy in Cordelia is ________ and fiscal policy in Saldinia is ________

A) sustainable; sustainable B) sustainable; unsustainable C) unsustainable; sustainable D) unsustainable; unsustainable

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Disney earned a negative economic profit in 2006

Indicate whether the statement is true or false

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The number of tomato producers is of no consequence to people who enjoy eating tomatoes

Indicate whether the statement is true or false

Economics