If Tom Drives a Car More Recklessly After He Purchases

question 310

True/False

If Tom drives a car more recklessly after he purchases a comprehensive insurance plan, the change in his behavior is an adverse selection problem.

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Definitions:

Organizational Buyer

An organization that purchases goods or services for its own use or for further production, including companies, governments, and institutions, not individual consumers.

Janitorial Services

Services provided to maintain cleanliness and upkeep of buildings and facilities.

Business-to-Business Marketing

Marketing efforts directed from one company to another, rather than to individual consumers.

Not-for-Profit Organizations

Entities that operate for purposes other than making a profit, often focusing on social, educational, or humanitarian objectives.