In the early 1990s, New Jersey and Pennsylvania reformed their automobile insurance systems so that citizens could opt for either a less-expensive policy that does not allow people to sue if they get into accidents or a more-expensive policy that does allow people to sue if they get into accidents. In New Jersey, the default option was the less-expensive policy that did not allow suing. In Pennsylvania, the default option was the more-expensive policy that did allow suing. Given those options, which policy do you think most people in New Jersey ended up with? What about in Pennsylvania? Explain.
In the early 1990s, New Jersey and Pennsylvania reformed their automobile insurance systems so that citizens could opt for either a less-expensive policy that does not allow people to sue if they get into accidents or a more-expensive policy that does allow people to sue if they get into accidents. In New Jersey, the default option was the less-expensive policy that did not allow suing. In Pennsylvania, the default option was the more-expensive policy that did allow suing. Given those options, which policy do you think most people in New Jersey ended up with? What about in Pennsylvania? Explain.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:In the early 1990s, New Jersey and Pennsylvania reformed their
automobile insurance systems so that citizens could opt for either a
less-expensive policy that does not allow people to sue if they get
into accidents or a more-expensive policy that does allow people to
sue if they get into accidents. In New Jersey, the default option was
the less-expensive policy that did not allow suing. In Pennsylvania,
the default option was the more-expensive policy that did allow
suing. Given those options, which policy do you think most people
in New Jersey ended up with? What about in Pennsylvania? Explain.
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