Use the following to answer questions 22-24:
Figure 16.1
-(Figure 16.1) An individual who buys full-coverage automobile insurance will choose to take _____ unit(s) of action to prevent theft.
A) 0
B) 1
C) 2
D) 3

Question

Use the following to answer questions 22-24:
Figure 16.1 
-(Figure 16.1) An individual who buys full-coverage automobile insurance will choose to take _____ unit(s) of action to prevent theft.
A) 0 
B) 1 
C) 2 
D) 3

Quizplus · Accepted Answer

When an individual has full-coverage insurance, they are less incentivized to take preventive actions because they are fully covered for any losses. Hence, they are likely to take 0 units of action to prevent theft.

Use the Following to Answer Questions 22-24