In the Market for Auto Insurance,in a Pooling Equilibrium

question 1

Multiple Choice

In the market for auto insurance,in a pooling equilibrium,

• A) risky and safe drivers pay the same premium for insurance.
• B) risky drivers pay a larger premium than do safe drivers for insurance.
• C) risky drivers pay a smaller premium than do safe drivers for insurance.
• D) risky drivers cannot obtain insurance.
• E) safe drivers cannot obtain insurance.

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Definitions:

Carol Mosely Braun

The first African American woman to serve as a U.S. Senator, representing Illinois and breaking barriers for women of color in politics.

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An international award given annually for outstanding contributions in literature, one of the Nobel Prizes established by Alfred Nobel's will.

Toni Morrison

An American novelist, essayist, editor, teacher, and professor emeritus at Princeton University, notable for her works exploring black identity in America, and recipient of the Nobel Prize in Literature in 1993.

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