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  3. Study Set
    Microeconomics Theory with Applications
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    Exam 20: Assymetric Information and Market Behaviour
  5. Question
    If the Proportion of High Risk Drivers Is Too High
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If the Proportion of High Risk Drivers Is Too High

Question 24

Question 24

Multiple Choice

If the proportion of high risk drivers is too high, then:


A) only low risk drivers will buy insurance.
B) both high and low risk drivers will buy insurance.
C) only high risk drivers will buy insurance.
D) no one will buy insurance.

Correct Answer:

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