Which of the Following Is Not an Example of an Adverse

question 69

Multiple Choice

Which of the following is not an example of an adverse selection problem?

• A)A homeowner purchases a refrigerator that the seller knows has a history of leaking.
• B)A highly productive worker quits her job after a salary cut knowing that she can make more at a different job.
• C)A major league baseball player performs poorly in his second season after signing a multi-million dollar contract.
• D)A contractor uses low quality materials for construction but charges for higher quality materials.

---

Definitions:

Empathic Listening

Listening to understand the speaker’s feelings, needs, and wants so that you can appreciate his or her point of view.

Retain Information

The process of keeping or memorizing facts or details over a period of time.

Listening Difficulty

Challenges or obstacles that prevent effective understanding of spoken communication.

Mind Wandering

The phenomenon of thoughts drifting away from the current task or focus, leading to daydreaming or thinking about unrelated topics.