Adverse Selection Is Created by

question 152

Multiple Choice

Adverse selection is created by

• A) incentives to change behavior after two parties have reached an agreement.
• B) risk.
• C) lump-sum taxes.
• D) private information.

---

Definitions:

Council on Environmental Quality

A federal agency within the Executive Office of the President that advises on environmental policies and strategies.

Transporter

An entity or individual involved in the movement of goods or people from one location to another.

Comprehensive Environmental Response, Compensation, and Liability Act

A U.S. federal law, enacted in 1980, designed to clean up sites contaminated with hazardous substances.

Potentially Responsible Parties

Individuals or entities that may be liable for contamination at a hazardous waste site under environmental laws.