Adverse Selection Occurs

question 32

Multiple Choice

Adverse selection occurs

• A)when an insurance company loses money on its investments.
• B)when insurance purchasers buy insurance but do not have a loss.
• C)when catastrophic losses occur as a result of a natural disaster.
• D)when applicants with a higher-than-average chance of loss seek insurance at standard rates.

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Definitions:

Specific Places

This term doesn't align directly with a specific economic concept; it could relate to locations significant for economic activities or market transactions.

Transferability

Transferability refers to the ease with which skills, knowledge, or assets can be moved or used in different contexts or jobs.

Supply Of Water

The total volume of water available for use from natural sources, storage, and distribution systems to meet consumer demands.

Trading

The action of buying, selling, or exchanging goods and services within or across markets.