The Adverse Selection Problem Is the Tendency for Insured Drivers

question 63

True/False

The adverse selection problem is the tendency for insured drivers to drive recklessly.

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Definitions:

Homeostasis

The ability of an organism or environment to maintain stability in response to changes.

Intrinsic Motivation

Motivation driven by an interest or enjoyment in the task itself, rather than relying on external pressures or rewards.

Drive Theory

A psychological theory that suggests human behaviors are motivated by internal drives that seek to reduce physiological needs.

Stimulation

The act of encouraging a biological or physiological activity or response through some external input or action.