Question: QUESTION 9 Why does the United States require everybody with a car to pay for car insurance? If nobody was forced to buy car

QUESTION 9 Why does the United States require everybody with a car to pay for car insurance? If nobody was forced to buy car insurance, then only the (safe / risky) drivers would want to buy it. The lack of selection. Furthermore, the (safe / risky) drivers in the (safe / risky) drivers who would market for car insurance is called buy car insurance would also have incentives to take more risks since a company will pay for any damage. This is called hazard QUESTION 9 Why does the United States require everybody with a car to pay for car insurance? If nobody was forced to buy car insurance, then only the (safe / risky) drivers would want to buy it. The lack of selection. Furthermore, the (safe / risky) drivers in the (safe / risky) drivers who would market for car insurance is called buy car insurance would also have incentives to take more risks since a company will pay for any damage. This is called hazard

Step by Step Solution

★★★★★

3.51 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The United States requires everybody with a car to pay for car insurance primarily to protect ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Greenville has provided the following information from its General Fund Revenues and Appropriations/ Expenditure/Encumbrances subsidiary ledgers for the fiscal year ended. Assume the beginning fund...

SF Co. operates on a calendar year basis . It begins the annual budgeting process in late August , when the president establishes target for total sales dollars and net operating income before taxes...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Googles ease of use and superior search results have propelled the search engine to its num- ber one status, ousting the early dominance of competitors such as WebCrawler and Infos- eek. Even later...

Levandusky Insurance Services Limited has two service support divisions (actuarial valuation and premium) and two production divisions (advertising and sales). The allocation of the efforts of each...

09 Dana's Ribbon World makes award rosettes. Following is information about the company: Variable cost per rosette Sales price per rosette Total fixed costs per month Required: $ 1.60 4.00 1200.00 1....

Would you please do a swot analysis of this case? Roberta Brown, Marketing Communications Director for Upstate Insurance, was thinking about the future of the recently launched relationship marketing...

Would you please tell me which is the main marketing issue in this case? Roberta Brown, Marketing Communications Director for Upstate Insurance, was thinking about the future of the recently launched...

QUESTION 1 Which of the following is true of an assignment? a) The assignee and the landlord have no legal relationship. b) The assignor is no longer responsible for the obligations under the lease....

GARY AND JUDY PARKER PERSONAL INFORMATION AND BACKGROUND Gary and Judy Parker live in Missouri and have been married for 19 years. They have two children, John and Julie, ages 17 and 15,...

A 5.0-cm-diameter cylinder is heated to a temperature of 200C, and air at 30C is forced across it at a velocity of 50 m/s. If the surface emissivity is 0.7, calculate the total heat loss per unit...

Suppose the following time series model has been fit to historical data and found to be an adequate model. Yt = 35 + t + .25t-1 - .30t-2 The first four observations are Y1 = 32.5, Y2 = 36.6, Y3 =...

solve for r e i f p r = 0 . 7 2 4 8 n u = 1 9 2 . 2 3 8 c y l = h D k = 0 . 3 + 0 . 6 2 R e 1 2 P r 1 3 [ 1 + ( 0 . 4 P r ) 2 3 ] 1 4 [ 1 + ( R e 2 8 2 , 0 0 0 ) 5 8 ] 4 5

Read the following MCQs and select the right answer: 1. For July, White Corporation has budgeted production of 6,000 units. Each unit requires 0.10 direct labor-hours at a cost of $8.50 per direct...

EAS LO 9.4 Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from...

Lerato elected to retire from employment 30 31 August 2018, the day after he celebrated his 60th birthday. His income and deductions for the year of assessment ended 2 February 2019 were as follows:...

The radii of the two end-discs of a container (as shown) are r and r, (where r S rz in general) and its height h. I drill two identical holes at the centers of two end- discs to enable a draining...

When presenting a speech online, which of the following statements represents a best practice?Multiple ChoiceGive extra attention to how you use visual resources.Avoid looking directly at the camera...

Under what general circumstances is a taxable acquisition structure preferable? Consider specifically the tax attributes and tax status of the target corporation and the targets shareholders. Also...

Hoosier Industries is a U. S. multinational corporation with two wholly owned subsidiaries: one in Malaysia and one in Japan. Assume the local tax rates are 35% in the United States, 20% in Malaysia,...

What is the effect of dividend imputation on r*c, the required after corporate tax but before shareholder level tax rate of return? What is the effect of dividend imputation on r*c as k (the...

Under what circumstances will a partner recognize a gain from an operating distribution?

List two common situations that will cause a partner's inside and outside basis to differ.

Franklin, Jefferson, and Washington formed the Independence Partnership (a calendar-year-end) by contributing cash 10 years ago. Each partner owns an equal interest in the partnership. Franklin,...