In Which Situation Is Adverse Selection MOST Likely to Be

question 87

Multiple Choice

In which situation is adverse selection MOST likely to be a problem?

• A)buying tomatoes at the local farmers' market
• B)hiring a new manager to work the night shift
• C)buying a new lawnmower
• D)buying a house directly from the previous owner

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Definitions:

Utilitarianism

This is an ethical theory that posits the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Schwartz's Values Model

Is a theory that identifies universal values that influence people's behavior and categorizes them into a system that explains human motivation.

Universalism

The ethical perspective that certain standards, values, or truths are applicable to all people, regardless of culture or individual differences.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and a higher propensity for negative feelings.