Bill purchases property insurance for his office building,which includes coverage for fire damage.The policy offers premium discounts for smoke detectors,fire alarms,fire extinguishers and sprinkler systems.This is an incentive system to help avoid
A) adverse selection.
B) adverse signals.
C) moral hazard.
D) screening.
E) None of the above answers is correct.
Correct Answer:
Verified
Q43: When Sam makes an agreement and then
Q44: One way of screening in the automobile
Q45: When an auto insurance company is screening,it
Q46: Auto insurance companies charge a lower premium
Q47: In the market for auto insurance,with a
Q49: In the market for automobile insurance,adverse selection
Q50: Insurance companies
A) pool risk and enable everyone
Q51: If you have private information that you
Q52: In the market for auto insurance,in a
Q53: In the market for auto insurance,in a
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