One Reason to Be Wary of Programs That Promise to Teach

question 101

Multiple Choice

One reason to be wary of programs that promise to teach you speed reading techniques in return for money is that such claims do not fit with the available data on information processing and memory.This is consistent with the pseudoscience warning sign known as

• A)absence of connectivity.
• B)evasion of peer review.
• C)exaggerated claims.
• D)psychobabble.

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Definitions:

Adverse Selection

A situation in which asymmetric information results in high-risk individuals being more likely than low-risk individuals to acquire insurance or another financial product, leading to market inefficiency.

Defaulting

Failing to meet the legal obligations of a loan, typically by not making the required payments.

Health Insurance Market

The sector of the economy providing plans and services for individuals to cover healthcare expenses.

Adverse Selection

A situation in markets where buyers and sellers have asymmetric information, leading potentially to a selection of undesirable outcomes, such as in insurance markets where those most likely to need coverage are also most likely to purchase it.