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:

Test Positive

To show the presence of a particular condition or substance in a test, indicating that the condition or substance was detected.

British Columbia

A province located on the west coast of Canada, known for its natural scenery and diverse landscapes.

Sunny Days

Days characterized by sunshine with clear, cloudless skies.

Call in Sick

The act of informing one's place of employment that they cannot come to work due to illness.