Homework Clinic
Social Science Clinic => Economics => Topic started by: azncindy619 on Jun 29, 2018
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Insurance companies charge a lower premium to drivers who carry a higher deductible because
A) insurance companies are not profit maximizers.
B) a driver's riskiness decreases as the driver's deductible increases.
C) a high deductible signals a high risk.
D) insurance companies prefer that drivers carry no deductible.
Question 2
The figure above shows a labor market. If this labor market is perfectly competitive, the wage rate is
A) 4 per hour.
B) 6 per hour.
C) 8 per hour.
D) 10 per hour.
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Answer to Question 1
B
Answer to Question 2
B