Which of the Following Is and Example of a Market

question 15

Multiple Choice

Which of the following is and example of a market failure caused by asymmetric information?

• A)The generation of electricity from fossil fuels creates an externality.
• B)Automobile dealers offer warranties on their used cars.
• C)Low risk individuals choose not to buy insurance.
• D)High risk individuals pay higher premiums than low risk individuals.

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Definitions:

Job Satisfaction

The level of contentment employees feel with their job role, which can influence their performance, commitment, and overall morale.

Core Self-Evaluations

A personality trait concept referring to an individual's fundamental assessments of their own abilities, worth, and control over the environment.

Life Satisfaction

A measure of how people evaluate their lives as a whole rather than their current feelings.

Creativity

The skill to come up with distinctive and rare ideas, or to invent something original or imaginative.