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Author Question: If bad drivers can usually avoid being ticketed by the police, then insurance companies will A) ... (Read 65 times)

sdfghj

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If bad drivers can usually avoid being ticketed by the police, then insurance companies will
 
  A) use one's driving record as a signal.
  B) use one's driving record as a screening device.
  C) not be able to use one's driving record as a screening device.
  D) request driving records directly from the police and not from the individual applicant.

Question 2

The requirement that all drivers must carry auto insurance reduces
 
  A) moral hazard.
  B) the effectiveness of signaling.
  C) adverse selection.
  D) the chance of auto accidents.


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hanadaa

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sdfghj

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Reply 2 on: Jul 1, 2018
Gracias!


blakcmamba

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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