Which of the Following Is the Best Example of an Adverse

question 91

Multiple Choice

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

• A) Once individuals are insured, they are less likely to take efficient precautions.
• B) Individuals are unlikely to pay for something if they can receive the benefits for free.
• C) When a firm pollutes the air, families living nearby suffer the consequences.
• D) Individuals who seek to purchase health insurance have better information about their health than do insurance companies.

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Definitions:

Reinforcement

The process by which a behavior is strengthened, increasing the likelihood that the behavior will be repeated.

Role Conflict

A situation where an individual faces incompatible demands or expectations from different roles they occupy, leading to stress or difficulty in fulfilling those roles effectively.

Gender Constancy

A cognitive understanding developed in early childhood that one’s gender identity is fixed and consistent over time and situations.

Gender Stereotyping

The practice of ascribing to an individual specific attributes, characteristics, or roles by reason only of their gender.