"Screening" Means That an Auto Insurance Company Is

Multiple Choice

"Screening" means that an auto insurance company is

A) enforcing a pooling equilibrium.
B) ignoring all private information.
C) creating an incentive to eliminate moral hazard even though it reinforces the possibility of adverse selection.
D) creating an incentive to eliminate adverse selection even though it reinforces the possibility of moral hazard.
E) creating an incentive for a risky driver to reveal that he or she is risky.