According to a Recent Study of Chilean Bus Drivers,drivers Who

question 35

Multiple Choice

According to a recent study of Chilean bus drivers,drivers who are paid by the number of passengers they transport have higher productivity than drivers who are paid by the hour.If Chilean bus drivers are paid by the number of passengers they transport and Colombian bus drivers are paid by the hour,we can conclude that

• A) Chilean bus drivers likely have a higher standard of living than Colombian bus drivers.
• B) Colombian bus drivers likely have a higher standard of living than Chilean bus drivers.
• C) Chilean and Colombian bus drivers likely have the same standard of living.
• D) Chilean and Colombian bus drivers likely have a higher standard of living than US bus drivers.

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Definitions:

Moral Hazard

A situation where one party engages in risky behavior knowing that it is protected against the consequences, typically because another party bears the cost of those actions.

Car-Insurance Coverage

Protection against financial loss resulting from incidents involving a vehicle, including accidents, theft, and other damages.

Moral Hazard

A situation where one party is more likely to take risks because they do not bear the full consequences of their actions.

Auto Insurance

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident or other vehicular damage.