Diversifun, Inc., an insurance company, recently decided to offer boat insurance. Diversifun was concerned that the most likely boat insurance customers would be the least competent, highest-risk boat captains, because they stand to benefit most from boat insurance coverage. Since Diversifun cannot distinguish perfectly between high-risk and low-risk skippers, it decided to set its boat-insurance premiums a bit higher to account for the foolhardy sea captains. The economic problem in this story is known as:a. Adverse selectionb. Signalingc. Moral hazardd. Screening
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Diversifun, Inc., an insurance company, recently decided to offer boat insurance. Diversifun was concerned that the most likely boat ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
In a local market, the monthly price of Internet access service decreases from $20 to $10 , and the total quantity of monthly accounts across all Internet access providers increases from 80 comma 000 to 180 comma 000.
Answers (1)
Ed moura has 60000 invested in stocks paying 7%. how much additional money should he invest in certificates of deposit paying 3% so that the average retrun on the two investments is 4%.
Answers (1)
Which tasks would Power, Structural, and Technical Systems employees most likely perform
Answers (1)
On July 8th, Jones Inc. issued an $80,000, 6 %, 120-day notes payable to Miller Company, Assume that the fiscal year of Jones ends July 31.
Answers (1)
Integrated Devices, Inc., is a private, for-profit corporation that is owned by seven shareholders who are members of the same family. Integrated is a. an S corporation. b. a close corporation. c. a public corporation and a private corporation. d.
Answers (1)
New Questions in Business
When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worse off. a. true b. false?
Answers (1)
The price for cigarettes sold by Big Tobacco Co Ltd was 6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets.
Answers (1)
Services had net income for the month of October of $ 23 comma 040. Assets as of the beginning and end of the month totaled $ 369 comma 000 , and $ 399 comma 000 , respectively. Calculate Matured Water Services' ROA for the month of October.
Answers (1)
Symbic Foods, a chain of fast food restaurants, has included a drop-down menu on its main Web site. With this drop-down menu, people can view their country-specific Web site, which contains information about the dishes that Symbic Foods serves in
Answers (1)
Zoe buys three new lipsticks from a store at the mall. Which payment method would reduce the amount of money in her checking account?
Answers (1)