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Managerial Economics · End Term · 13 Sept 2026 · May 2026 term · Set 1

Question 35: If bad drivers can usually avoid being ticketed by the p…

Question 35

+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 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 35 of 37 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 13 Sept 2026, in the May 2026 term (Managerial Economics 13 Sep 26 (Session 2)). It carries 1 mark.

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