Multiple Choice
In the market for automobile insurance,adverse selection implies that
A) drivers with greater risks want to buy a policy without deductibles.
B) drivers with greater risks want to buy a policy with large deductibles.
C) uninsured drivers will drive recklessly.
D) insured drivers will drive recklessly.
E) moral hazard does not exist in this market.
Correct Answer:
Verified
Correct Answer:
Verified
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