Which of the Following Would Be Considered an Example of Adverse

question 62

Multiple Choice

Which of the following would be considered an example of adverse selection?

• A) Malpractice insurance may increase the amount of malpractice.
• B) Drivers may be less cautious because they have airbags installed in a car.
• C) Those individuals who most need insurance are the ones most likely to buy it.
• D) Work contracts that give a set number of sick-days may encourage more workers to call in sick.

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Definitions:

Bonanza Farms

Large-scale agricultural operations in the United States during the late 19th century that utilized advancements in farming technology and practices to produce massive quantities of crops, particularly wheat.

American Citizenship

The status of being a citizen of the United States, entailing certain rights, duties, and privileges as outlined by the U.S. Constitution and laws.

Chief Joseph

A leader of the Nez Perce tribe who conducted a remarkable retreat in an attempt to lead his people to Canada in 1877 to escape conflicts with the U.S. government.

Wounded Knee Massacre

Last incident of the Indian Wars; it took place in 1890 in the Dakota Territory, where the U.S. Cavalry killed over 200 Sioux men, women, and children.