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

question 74

Multiple Choice

The figures show two auto insurance markets, one market for safe drivers and one market for aggressive drivers.
-In a pooling equilibrium,there ________ a deadweight loss in the market for safe drivers,and there ________ a deadweight loss in the market for aggressive drivers.

• A) is; is
• B) is; is not
• C) is not; is
• D) is not; is not
• E) might be; might be

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Definitions:

Eccrine Sweat Gland

A type of sweat gland that is found all over the body, particularly on the palms, soles, and forehead, and is primarily involved in temperature regulation.

Sebaceous Gland

A type of gland in the skin that secretes an oily substance called sebum, which lubricates hair and skin.

Hair Follicle

The skin organ that produces hair, consisting of a small tubular cavity containing the root of the hair shaft.

Epidermis

The outer layer of cells covering an organism, the epidermis provides protection against the environment and is involved in water retention.