As It Applies to Insurance, the Adverse Selection Problem Is

question 193

Multiple Choice

As it applies to insurance, the adverse selection problem is the tendency for

• A) those most likely to collect on insurance to buy it.
• B) those who buy insurance to take less precaution in avoiding the insured risk.
• C) sellers to price discriminate.
• D) sellers to restrict output and charge high prices.

---

Definitions:

Pterosaur

Extinct flying reptiles that existed during the age of dinosaurs, distinct for their winged structure formed by a membrane stretching from an elongated fourth finger to their legs.

Metabolic Rates

The rate at which an organism converts nutrients into energy, impacting growth, reproduction, and survival.

Social Groups

Collections of individuals who interact with each other, share similar characteristics and collectively have a sense of unity or identity.

Radiation

The release or conveyance of energy as waves or particles across space or within a material medium.