If a Person Drives Less Carefully After Purchasing Automobile Insurance

question 31

Multiple Choice

If a person drives less carefully after purchasing automobile insurance,

• A) it is due to adverse selection.
• B) moral hazard exists.
• C) the person's insurance deductible must be large.
• D) the insurance company must have perfect information.

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Definitions:

Works Councils

Worker representation bodies present in some European countries, which participate in discussing and negotiating workplace matters with employers.

Government Controlled Unions

Labor unions which are directly or indirectly controlled by government authorities, often with limited independence in advocating for workers' rights.

Enterprise Unions

Labor unions that represent workers within a single company or enterprise, as opposed to industrial or craft unions which organize across an industry.

Exclusive Representation

A labor relations principle where a duly elected union is the sole body that can negotiate on behalf of all employees in a bargaining unit, regardless of their union membership.