Fernando Is Deciding Where to Go for Spring Break

question 124

Multiple Choice

Fernando is deciding where to go for spring break. He can go home and see his family or go to Florida with his friends. He thinks that both options are desirable and is having a difficult time deciding. Fernando is experiencing a(n) __________ conflict.

• A)approach-approach
• B)avoidance-avoidance
• C)approach-avoidance
• D)multiple approach-avoidance

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Definitions:

Moral Hazard

A situation in economics where one party takes more risks because they know another party bears the cost of those risks.

AFLAC

An American insurance company known for its supplemental insurance products for individuals and groups at workplaces in the United States.

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to another.

Adverse Selection

A situation in insurance and other markets where buyers and sellers have asymmetric information, potentially leading to market inefficiency or failure.