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Managerial Economics · End Term · 1 Sept 2024 · May 2024 term

Question 7: If bad drivers can usually avoid being ticketed by the po…

Question 7

+1 markOne correct option

If bad drivers can usually avoid being ticketed by the police, then insurance companies will

  1. A

    use one's driving record as a signal

  2. B

    use one's driving record as a screening device

  3. C

    not be able to use one's driving record as a screening device

  4. D

    request driving records directly from the police and not from the individual applicant

Show answer

Correct answer

  • C

    not be able to use one's driving record as a screening device

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Question 7 of 36 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 1 Sept 2024, in the May 2024 term (IIT M DEGREE AN EXAM QDB3 01 Sep 2024). It carries 1 mark.

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