Adverse Selection Is a Situation in Which Asymmetric Information Results

question 130

True/False

Adverse selection is a situation in which asymmetric information results in low-quality goods or low-quality consumers being squeezed out of transactions because they are unable to demonstrate their quality.

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Definitions:

Self-actualized People

Individuals who have realized and fulfilled their potential and capabilities, achieving their personal maximum.

Maslow

Refer to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Potential Fulfillment

The process or achievement of reaching one's full potential or capabilities in various aspects of life.

Self-actualization

Fulfilling or actualizing one’s skills and potential, regarded as an innate urge or requirement in each individual.