​Which Firm Is Not Dealing with Adverse Selection

question 10

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 contracts with suppliers regardless of ISO 9000 status
• D)​Smokers get the worse life insurance rates as non-smokers

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Definitions:

Reverse Thinking

An approach to problem-solving where one starts with the desired outcome and works backward to identify the steps necessary to achieve that outcome.

Conservation

Conservation is a concept in cognitive development, demonstrating that a child understands that quantities remain consistent despite changes in shape or arrangement, typically developed during the concrete operational stage.

Properties of Objects

Intrinsic and extrinsic attributes or features of an object, including size, shape, color, and texture.

Shape

The external form, contours, or outline of someone or something.