Which of the Following Is a Description of Adverse Selection

question 158

Multiple Choice

Which of the following is a description of adverse selection?

• A) Malpractice insurance may increase the amount of malpractice.
• B) Drivers may be less cautious because they have airbags installed in a car.
• C) Those individuals who most need insurance are the ones most likely to buy it.
• D) A work contract that gives a set number of sick days may encourage workers to claim they are sick more often.
• E) A polluting firm is taxed by the government.

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Definitions:

Blinking

A rapid, reflexive closure of the eyelid to protect the eye from foreign objects, dryness, or to spread tears across and remove irritants from the surface of the eye.

Interpreter

A person or system that translates spoken or written language from one language to another or someone who helps to clarify or explain informations or data.

Right Hemisphere

The hemisphere of the brain that is typically associated with processing visual and spatial information, recognition of faces, and the interpretation of emotions and expressions.

Left Hemisphere

The left side of the brain, which is typically associated with analytical tasks, language processing, and logic.