Which of the Following Is Not Related to Adverse Selection

question 88

Multiple Choice

Which of the following is not related to adverse selection in insurance markets?

• A)An insurance company has no way of distinguishing among applicants
• B)An insurance company must charge a higher price to applicants who are good health risks
• C)The price of insurance is attractive to poor health risks, but not to good ones
• D)The insured group becomes less healthy on average
• E)Because of the relative unhealthiness of the insured group, rates must rise

---

Definitions:

Personal Computer

A compact, relatively inexpensive computer designed for individual use, typically capable of running independent applications on a local storage system.

Culturally Diverse Workforce

A workplace composed of employees from various ethnic, racial, gender, and nationality backgrounds, enhancing creativity and innovation.

Diversity Issues

Challenges related to managing a diverse workforce, including differences in culture, gender, age, and background.

Managing Diversity

The strategies and practices used to create an inclusive atmosphere that values and utilizes differences among people.