Which of the Following Is NOT an Example of the Adverse

question 142

Multiple Choice

Which of the following is NOT an example of the adverse selection problem?

• A) Buyers in a market for used cars must choose from an undesirable selection of used cars.
• B) An insurance company must choose one price for its coverage for both high-cost and low-cost people.
• C) Commercial banks would rather use credit rationing than raising interest rates in the presence of excess demand for loans.
• D) An insured motorist drives more recklessly.

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Definitions:

Physical Health

A state of physical well-being in which an individual is free from illness, injury, or pain, and can perform daily activities effectively.

Academic Achievement

Refers to the level of success a student has achieved in formal education, often measured by grades, tests, or degrees obtained.

Mental Health

A state of well-being in which an individual realizes his or her own abilities, can cope with the normal stresses of life, can work productively and is able to make contributions to his or her community.

Educational Goals

Objectives or aspirations related to acquiring knowledge or skills, often used to guide the learning process or curriculum development.