Studies of Children Adopted from Poorly Run Romanian Orphanages Found

question 29

Multiple Choice

Studies of children adopted from poorly run Romanian orphanages found that those who had been adopted before ________ of age suffered no lasting negative effects.

• A) 3 months
• B) 6 months
• C) 1 year
• D) 2 years
• E) 5 years

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Definitions:

Moral Hazard

A situation where one party takes risks because they know they will not have to bear the full consequences of their actions.

Divorce Insurance

A type of financial product designed to provide financial protection to individuals in case of a divorce, typically by paying a lump sum.

Marital Problems

Issues or conflicts arising between spouses that can affect the stability and health of the marriage.

Adverse Selection

A situation where asymmetric information results in high-risk individuals being more likely to participate in a contract, often seen in insurance markets.