Author Question: Insurance companies charge a lower premium to drivers who carry a higher deductible because A) ... (Read 86 times)

azncindy619 · **on:** Jun 29, 2018

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.