Multiple Choice
An example of statistical discrimination would be:
A) charging young drivers a higher premium than older drivers.
B) charging homes near a lake higher premiums for flood insurance than those on a hill.
C) assuming the food will be better at an Italian restaurant than a Chinese one in the Little Italy neighborhood of NYC.
D) All of these are examples of statistical discrimination.
Correct Answer:

Verified
Correct Answer:
Verified
Q65: Moral hazard is a problem that arises:<br>A)
Q67: Building a good reputation in the marketplace:<br>A)
Q68: Some people make purchases without complete information
Q69: Information asymmetry is present when:<br>A) one person
Q71: The principal-agent problem:<br>A)arises from an imbalance of
Q71: Some policy makers have suggested that mandatory
Q73: The principal-agent problem:<br>A) is when the principal
Q74: User reviews of products on store websites
Q75: Generalizing using statistical discrimination is:<br>A) an irrational
Q147: Taking action to reveal private information about