Quiz Space

Managerial Economics · End Term · 28 Apr 2024 · January 2024 term · Set QDB1

Question 39: If bad drivers can usually avoid being ticketed by the p…

Question 39

+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

See the whole paperTake it as a mock test

Question 39 of 40 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 28 Apr 2024, in the January 2024 term (IIT M DEGREE AN EXAM QDB3 28 Apr 2024). It carries 1 mark.

This question was also asked in

More questions from this paper

  1. Q1Nita’s risk preferences are
  2. Q2Should Nita take up the new job?
  3. Q3If Nita is willing to join the new job and also to buy insurance to protect against the variable income associated with…
  4. Q4Calculate the profit-maximizing Price (in \$) for this monopolist\ P=
  5. Q5Calculate the profit maximizing quantity for this monopolist\ Q=
  6. Q6What will be the profit of this monopolist?\ Profit =
  7. Q7Suppose a second firm enters the market. Let Q1 be the output of the first firm and Q2 be the output of the second. Mar…
  8. Q8Suppose a second firm enters the market. Let Q1 be the output of the first firm and Q2 be the output of the second. Mar…
  9. Q9Suppose a second firm enters the market. Let Q1 be the output of the first firm and Q2 be the output of the second. Mar…
  10. Q10Suppose a second firm enters the market. Let Q1 be the output of the first firm and Q2 be the output of the second. Mar…
  11. Q11Suppose a second firm enters the market. Let Q1 be the output of the first firm and Q2 be the output of the second. Mar…
  12. Q12Now suppose that the two firms are competing in the Stackelberg manner where one of the firms makes its output decision…
  13. Q13Now suppose that the two firms are competing in the Stackelberg manner where one of the firms makes its output decision…
  14. Q14Now suppose that the two firms are competing in the Stackelberg manner where one of the firms makes its output decision…
  15. Q15Now suppose that the two firms are competing in the Stackelberg manner where one of the firms makes its output decision…
  16. Q16Now suppose that the two firms are competing in the Stackelberg manner where one of the firms makes its output decision…
  17. Q17The accounting cost associated with Mohan’s restaurant business is _
  18. Q18The economic cost associated with Mohan’s restaurant business is _
  19. Q19If there is no tariff, what is the quantity demanded (in thousand litres)
  20. Q20If the tariff is imposed, how much a consumer will pay for a litre of palm oil _
  21. Q21What is the new quantity demanded now (in thousand litres)? _
  22. Q22What will be the lost consumer surplus due to imposed tariff (in thousand INR) _
  23. Q23Tax revenue for the government will be (in thousand INR)
  24. Q24Tariff results in
  25. Q25What is Latif’s profit (per car in \$) if he does not offer a one-year warranty?_
  26. Q26What is Latif’s profit (per car in \$) if he offers a one-year warranty ?_
  27. Q27What is Hamid’s profit (per car in \$) if Latif’s does not offer a one-year warranty?
  28. Q28What is Hamid’s profit (per car in \$) if Latif’s offers a one-year warranty ?_
  29. Q29Will Latif’s match Hamid’s one-year warranty?
  30. Q30Is it a good idea for Hamid’s to offer a one-year warranty ?
  31. Q31What is true about monopolistic competition
  32. Q32A firm can always trade three units of labour for one unit of capital and still keep output constant. The production te…
  33. Q33The assumption about the consistency of consumers preferences is
  34. Q34A manager of a clothing firm is deciding whether to add another factory in addition to one already in production. The m…
  35. Q35Choose the correct alternative
  36. Q36Choose the correct alternative
  37. Q37A monopolist always produces in
  38. Q38Adverse selection occurs when
  39. Q40Moral hazard occurs when contracts are written in such a way that