Multiple Choice
By offering a menu of policies with different premiums and deductibles,insurance companies can _____ their customers;for example,a low-risk customer will often buy insurance with a lower _____ but a higher _____ than a high-risk customer.
A) signal;deductible;premium
B) signal;premium;deductible
C) screen;deductible;premium
D) screen;premium;deductible
Correct Answer:
Verified
Correct Answer:
Verified
Q101: If an insurance company insured 100,000 cars
Q102: Suppose that the probability of a major
Q103: Given uncertainty,individuals attempt to maximize their:<br>A)adverse selection.<br>B)expected
Q104: Insurance companies attempt to minimize moral hazard
Q105: The Conduire family owns three cars and
Q107: An individual can almost eliminate risk by
Q108: A fair insurance policy is one in
Q109: Barcelona and Los Angeles are similar,except Barcelona
Q110: On any particular day,the probability that it
Q111: Buying a warranty on a new television