Fire insurance policies include deductibles:
A. because when it comes to fire, most people are risk-averse.
B. because it is too expensive to insure fully something against fire.
C. to minimize moral hazard.
D. to maximize adverse selection.
Used-car dealers will often advertise how long they have been in business as a means of _____ their long-term _____
A. signaling; reputation
B. screening; customers
C. insuring; capital at risk
D. revealing; moral hazard