​Which Firm Is Not Dealing with Adverse Selection

question 15

Multiple Choice

​Which firm is not dealing with adverse selection

• A)​a manufacturer requires a 90 day probationary period for new employees
• B)a temporary clerical agency requires a typing test
• C)a manufacturer requires suppliers to be ISO 9000 certified
• D)​Smokers get the same life insurance rates as non-smokers

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Definitions:

Manuel Noriega

A Panamanian military officer and politician who was the de facto ruler of Panama from 1983 to 1989 before being removed from power by an American military intervention.

Drug Running

The illegal smuggling of controlled substances or narcotics across borders or through jurisdictions, often involving organized crime.

Allied Troops

Refers to the military forces of allied countries, typically in the context of the First and Second World Wars, who joined forces against common enemies.

Sharp Economic Downturn

A rapid and severe decline in economic activity, marked by significant drops in GDP, employment, and consumer spending.