When Those on the Informed Side of a Market Self-Select

question 163

Multiple Choice

When those on the informed side of a market self-select, the problem of __________ occurs.

• A)natural selection
• B)external benefits
• C)adverse selection
• D)the winner's curse
• E)the common pool

---

Definitions:

Gradual Loss

A slow diminution or decline in value, quality, or quantity over time.

Anterograde Amnesia

A condition where a person is unable to form new memories after the event that caused the amnesia, although long-term memories from before the event remain intact.

New Memories

The formation and storing of information and experiences that can be recalled at a later time, a fundamental process in learning.

Inability

The state of being unable to perform a function or action due to physical or mental limitations.