In the Market for Automobile Insurance,adverse Selection Implies That

question 32

Multiple Choice

In the market for automobile insurance,adverse selection implies that

• A) those who are insured might take greater risks.
• B) those who are uninsured might take greater risks.
• C) private information cannot be successfully screened.
• D) insured and uninsured alike will take greater risks.
• E) drivers with greater risks are more likely to buy insurance.

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Definitions:

Personal Control

The degree to which an individual believes they can influence or direct events affecting their life.

Organization Citizenship Behavior

Voluntary behaviors exhibited by employees that contribute to the overall positive functioning and atmosphere of the organization, beyond their required duties.

Willingness

The state of being prepared to do something; readiness or inclination to engage in an activity or process.

Behaviors

Observations of individual actions and responses, often studied in psychology to understand and predict human interactions.