In the Automobile Insurance Market,adverse Selection Occurs When

question 5

Multiple Choice

In the automobile insurance market,adverse selection occurs when

• A) drivers with greater risks buy a policy with large deductibles.
• B) drivers with greater risks buy a policy with no deductibles.
• C) uninsured drivers drive recklessly.
• D) insured drivers drive recklessly.

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Definitions:

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the rest of the body.

Binding

The process of forming chemical bonds between atoms or molecules to create more complex compounds or structures.

Oxygen/Hemoglobin Equilibrium

The process by which oxygen binds to hemoglobin in the blood and is transported to tissues, balanced by oxygen's release from hemoglobin.

CO

Carbon monoxide (CO) is a colorless, odorless, and toxic gas produced by incomplete combustion of carbon-containing materials.