The Figures Show Two Auto Insurance Markets, One Market for Safe

question 35

Multiple Choice

The figures show two auto insurance markets, one market for safe drivers and one market for aggressive drivers.
-In a separating equilibrium,aggressive drivers pay a premium of ________ and safe drivers pay a premium of ________.

• A) $1,000; $1,000
• B) $800; $1,200
• C) $1,200; $800
• D) $1,000; $800
• E) $1,200; $1,000

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Definitions:

Socially Disadvantaged

Referring to individuals or groups who experience unequal treatment or have less social power and access to resources due to their background or characteristics.

Inherently Characteristics

Traits or attributes that are naturally part of something or someone, intrinsically tied to their essence or constitution.

Minority Relations

The dynamics, interactions, and relationships between the societal majority and minority groups.

Scapegoat

is a person or group blamed for problems or failures, often to divert attention from the real causes or those actually responsible.