If Reckless Drivers Are More Likely Than Safe Drivers to Buy

question 219

True/False

If reckless drivers are more likely than safe drivers to buy automobile insurance, then a moral hazard problem has occurred.

---

Definitions:

Multiple Products

Offering a range of different goods or services within a business's portfolio to cater to various customer preferences or market segments.

Multiple Market Segments

The practice of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups with similar needs or characteristics.

Geographic Markets

Market segments defined by geographic areas where customers share similar needs and characteristics.

Increased Sales

An upward trend in the quantity of products or services sold, indicating growth in revenue for a business.