Coverall, Inc., an insurance company, recently moved into the motorcycle insurance market. Coverall was concerned that the most likely motorcycle insurance customers are those who ride their motorcycles recklessly, because they would benefit most from insurance coverage. Since Coverall cannot distinguish perfectly between high-risk and low-risk cyclists, it raised its motorcycle premiums in an effort to account for the reckless riders. The economic problem in this story is known as:a. signalingb. screeningc. adverse selectiond. moral hazard
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Coverall, Inc., an insurance company, recently moved into the motorcycle insurance market. Coverall was concerned that the most likely ...” 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
Clear Sailing Lifeboats uses 12,000 units of a certain component in production each year. Presently, this component is purchased from an outside supplier at $9.50 per unit.
Answers (1)
Redistributive philosophies Complete the following table by selecting the redistributive philosophy that matches each statement.
Answers (1)
If you could pack up and leave for vacation today wear would you go. why would you go and for how long (put it in a paragraph)
Answers (1)
Fit-for-Life Foods reports the following income statement accounts for the year ended December 31. Gain on sale of equipment $ 6,250 Depreciation expense-Office copier $ 420 Office supplies expense 790 Sales discounts 15,200 Insurance expense 1,240
Answers (1)
Suppose someone takes out a home improvement loan for $30,000. The annual interest on the loan is 6% and is compounded monthly. The monthly payment is $600. Let an denote the amount owed at the end of the nth month.
Answers (1)
New Questions in Business
An online medicaladvice company just completed an IPO with an investment bank on a firm-commitment basis. The firm issued 5 million shares of common stock, and the underwriting fees were $2.10 per share. The offering price was $27.90 per share.
Answers (1)
Which of the following is an example of how the principle of beneficence can be applied to a study employing human subjects? Ensuring that the selection of subjects includes people from all segments of the population.
Answers (1)
Match the following definitions with the correct term 1. Delocalization of food production and consumption connections 2. The process of learning culturally specific preferences passed from generation to generation 3.
Answers (1)
Adobe Systems Incorporated reported the following accounts and amounts (in millions) in its financial statements for the year ended November 30, 2013.
Answers (1)
A Trek Cycles manufactures and sells bicycles to retailers. The X-1 model sells for $500 and has per-unit variable costs of $300 associated with its production. The company has fixed expenses of $30,000 per month.
Answers (1)