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

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Definitions:

Suppress Emotions

The conscious effort to control and hold back one's feelings or emotional responses.

Autonomic Arousal

The activation of the autonomic nervous system, resulting in physiological responses such as increased heart rate, sweating, or rapid breathing, often as a reaction to stress or excitement.

Emotional Experiences

Complex feelings that result from one's interactions with stimuli or situations, often involving psychological arousal and cognitive processes.

Coping Strategy

Techniques or methods that individuals use to manage stress, difficult situations, or emotional challenges.