QUESTION:22[QUESTION BANK ID:39290]MULTIPLE CHOICECORRECTIf a tire company knows that customers buying insurance for their tires will increase the likelihood of being reckless, there is a problem of _____________. In order to combat this problem, the tire company should__________. TYPE:A Adverse selection; obtain more information about the customer’s driving record before selling insuranceB Moral hazard; obtain more information about the customer’s driving record before selling insuranceC Adverse selection; require the customer to sign a contract that states that insurance does not cover tire repair for reckless drivingD Moral hazard; require the customer to sign a contract stating that insurance does not cover tire repair for reckless driving
QUESTION:23[QUESTION BANK ID:10868]TYPE:MULTIPLE CHOICECORRECTWhich feature is NOT included in the best strategies that earn the highest profit in a repeated Prisoner’s Dilemma?
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