In contrast to folk customs, popular customs diffuse across the earth=s surface to locations with a wide variety of this diffusion depends, however, upon a group of people having a sufficiently high level of in order to obtain the associated with the popular custom.

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