The Term Adverse Selection Refers to a Situation Where

question 22

Multiple Choice

The term adverse selection refers to a situation where:

• A)people who buy insurance need it.
• B)most people don't need insurance.
• C)people are over- insured.
• D)most people are poor insurance risks.

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Definitions:

Output

The amount of products or services generated by a business, sector, or nation during a specific period.

Auto Repairs

Services provided to fix or maintain vehicles to ensure they are in optimal working condition.

Gasoline

A petroleum-derived liquid mixture consisting primarily of hydrocarbons, used primarily as fuel in internal combustion engines.

Auto Repairs

Services provided by mechanics and technicians to fix and maintain vehicles to ensure their proper functioning.