If Bad Drivers Can Usually Avoid Being Ticketed by the Police,then

question 68

Multiple Choice

If bad drivers can usually avoid being ticketed by the police,then insurance companies will

• A) use one's driving record as a signal.
• B) use one's driving record as a screening device.
• C) not be able to use one's driving record as a screening device.
• D) request driving records directly from the police and not from the individual applicant.

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Definitions:

Voluntary Exchange

A transaction where parties involved trade goods or services by mutual agreement, without coercion.

Mutual Gain

A situation or outcome in which all parties involved benefit or profit from the arrangement or transaction.

Potential Exchange

The possibility of trading goods, services, or other items of value between parties.

Trade

The exchange of goods, services, or both between two or more parties.