Which of the Following Is Not an Assumption of Hidden

question 65

Multiple Choice

Which of the following is not an assumption of hidden characteristics in automobile insurance markets?

• A)probability of loss from a collision is not uniform across drivers
• B)all drivers are risk averse
• C)each driver's completely informed about their own characteristics
• D)drivers risk characteristics cannot be communicated to insurance companies

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Definitions:

Mole

A mole is a unit of measurement used in chemistry to quantify the amount of substance, equivalent to approximately 6.022 x 10^23 particles, atoms, molecules, ions, or electrons.

Gas

One of the four fundamental states of matter with indefinite shape and volume, composed of molecules in constant random motion.

Gas Law

Mathematical relationships that describe the behavior of gases, relating pressure, volume, temperature, and amount of gas.

Sodium Azide

A chemical compound with the formula NaN3, used as a preservative in labs and as a propellant in airbag inflators.