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...
In the classical model, real Gross Domestic Product (GDP) per year is
A) determined by supply and demand conditions together. B) supply determined. C) demand determined. D) due to supply conditions plus the extent of government intervention in the economy.
If people expect an inflation rate of 3.3 percent, and the real interest rate is 3 percent, the nominal interest rate equals (approximately)
A) 0.3 percent. B) 8.6 percent. C) 6.3 percent. D) 9.9 percent.
What was not a grievance of the Continental Congress that met in October 1774?
a. Taxes had been imposed upon the colonies by the British Parliament. b. The colonies were not permitted to trade with nations other than England. c. England had confiscated western colonial land. d. Persons could be transported out of the colonies for trials.
Answer the following questions true (T) or false (F)
1. A redwood forest is not an example of a factor of production but the harvested and processed redwood is a factor of production. 2. The idea underlying Adam Smith's "invisible hand" is that people tend to behave in ways that go unnoticed in society. 3. The payment received by suppliers of entrepreneurial skills is called rent.