One Difference Between Moral Hazard and Adverse Selection Is

question 29

Multiple Choice

One difference between moral hazard and adverse selection is

• A)​Moral hazard has to do with unobservable characteristics of individuals
• B)Adverse selection has to do with unobservable actions of individuals
• C)Adverse selection occurs when individuals least appropriate for positions are most likely to apply for them
• D)​Adverse selection is when you choose the wrong answer on a test

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Definitions:

Malfunctioning

The failure of a system, device, or component to perform its required operational function.

Pathogens Transmission

The process by which infectious agents, such as bacteria, viruses, and fungi, are spread from one person, animal, or object to another.

Insufficient Hand Hygiene

Inadequate practices in cleaning hands, which can lead to the spread of infections and increased health risks.

Contaminated Blood Products

This term describes blood products, such as plasma or red blood cells, which are tainted with pathogens or unwanted substances, leading to potential risks when transfused.