What Is Adverse Selection

question 97

Essay

What is adverse selection?

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Definitions:

Binary Categorization

The classification of objects, concepts, or people into two distinct groups or categories.

Intergenerational Mobility

The comparison of adult children’s social class to that of their parents.

Increasingly Wealthy

Describes individuals or societies that are growing in wealth over time, typically due to economic growth, investments, and accumulation of assets.

Marx

Karl Marx, a 19th-century philosopher, economist, and revolutionary socialist whose works form the basis of Marxist theory.