Which of the Following Is an Example of an Adverse

question 105

Multiple Choice

Which of the following is an example of an adverse selection problem?

• A)A customer purchases four apples, two of which are bruised.
• B)A card shop puts its Halloween merchandise on sale on November 1st.
• C)A young job applicant fails to reveal that she was fired from her last job because she was incompetent.
• D)A man rents a car and then drives it less carefully and fills it with cheaper gas than he would if he owned it.

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Definitions:

Situational Force

External circumstances or pressures that influence an individual's behavior or decision-making processes.

Group Member Characteristics

The qualities, traits, and behaviors that define the individuals within a group and influence the group's dynamics and performance.

Achievement-Oriented Leadership

A leadership style focused on setting and achieving challenging goals, excellence, and demonstrating high performance.

Ambiguous Tasks

Tasks that are not clearly defined, lack specific goals or outcomes, and are subject to different interpretations.