Wayne is on the production line for Medical Services Inc. He has been there for five years and has won Employee of the Month more than anyone else. Zander, his coworker, who has only been at Medical Services three years and hasn’t even been nominated for Employee of the Month, just received a promotion. Wayne perceives a:.
a) negative output.
b) positive inequity.
c) negative expectancy.
d) negative inequity.
e) positive output.

With signals from no-claim bonuses and deductibles, a. the marginal cost curve for careful drivers lies to the left of the marginal cost curve for aggressive drivers b. auto insurance companies insure more aggressive drivers than careful drivers because aggressive drivers have a greater need for the insurance c. the market for car insurance has a separating equilibrium, and the market is efficient d. most drivers pay higher premiums than if the market had no signals