Which of the Following Is an Example of an Adverse

question 55

Multiple Choice

Which of the following is an example of an adverse selection problem?

• A) A customer purchases four apples, two of which are bruised.
• B) A card shop puts its Halloween merchandise on sale after Halloween.
• C) A young worker is fired after she is late for work three times in one month.
• D) A man whose father had a heart attack wants to increase his life insurance coverage.

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Definitions:

Nonpolar

A type of chemical bond or molecule that does not have distinct electrical poles, resulting in even distribution of electrical charge.

Lewis Structure

A diagram illustrating the bonding between atoms in a molecule and the lone pairs of electrons that may exist.

Boric Acid

A weak, monobasic Lewis acid of boron often used as an antiseptic, insecticide, flame retardant, or in making other chemicals, represented as H3BO3.

Non-Bonding Lone Pairs

Non-bonding lone pairs refer to pairs of valence electrons on an atom that do not participate in bonding with other atoms.