If You Have Private Information That You Are a Riskier

question 18

Multiple Choice

If you have private information that you are a riskier driver than your record indicates,you are likely to buy an insurance policy that has a ________ deductible and a ________ premium.

• A) high; high
• B) high; low
• C) low; high
• D) low; low
• E) None of the above answers is correct because private information has no effect in the market for auto insurance.

---

Definitions:

Extraverts

Individuals characterized by their outgoing, socially confident behavior and preference for external stimulation.

Cultures

The beliefs, customs, arts, institutions, and all other products of human work and thought created by a society.

Inner Feelings

An individual's personal, private emotional experiences.

Facial Expressions

Non-verbal communications made with the face that convey emotional states or reactions.