Which of the following is an example of a non-price provision in an automobile insurance contract that can reduce moral hazard?
a. A provision specifying that coverage is limited to 75 percent of the total damages caused by an accident.
b. A provision that disallows medical claims by drunk drivers involved in accidents.
c. A provision that restricts accident compensation to claims over $1,000.
d. A provision requiring that the insured car carry certain safety devices like air bags.
B
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Refer to the figure above. Assuming that the market consists of only these two consumers, what is the market demand for pens when the price is $4?
A) 15 units B) 25 units C) 40 units D) 65 units
Refer to Figure 19-8. The equilibrium exchange rate is at A, $1.25/euro. Suppose the European Central Bank pegs its currency at $1.00/euro. At the pegged exchange rate,
A) there is a surplus of euros equal to 700 million. B) there is a shortage of euros equal to 500 million. C) there is a shortage of euros equal to 200 million. D) there is a surplus of euros equal to 300 million.
The accompanying table lists the height (STUDHGHT) in inches and weight (WEIGHT) in pounds of five college students. Calculate the correlation coefficient. STUDHGHTWEIGHT 74165 73165 72145 68155 66140
What will be an ideal response?
If the price of natural gas rises, when is the price elasticity of demand likely to be the highest?
a. immediately after the price increase b. one month after the price increase c. three months after the price increase d. one year after the price increase