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.

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Definitions:

Zygote's Outer Cells

The cells on the periphery of a zygote (the earliest embryonic stage) that contribute to the development of the placenta and other supporting structures for the embryo.

Implantation

The process, beginning about 10 days after conception, in which the developing organism burrows into the uterus, where it can be nourished and protected as it continues to develop.

Fetus Survival

The viability or ability of a fetus to live outside the uterus, which may depend on gestational age, fetal health, and medical technology.

Mother's Uterus

The womb, a muscular organ located in a woman's lower abdomen that nurtures and protects the developing fetus during pregnancy.