If reckless drivers are more likely to buy automobile insurance than – McqOptions

MCQOPTIONS

1.	If reckless drivers are more likely to buy automobile insurance than safe drivers are,
A.	a moral hazard has occurred.
B.	adverse selection has occurred.
C.	the market for insurance is efficient.
D.	then automobile insurance will be fairly priced.
Answer» C. the market for insurance is efficient.

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