Which of the Following Is the Best Example of Adverse

question 4

Multiple Choice

Which of the following is the best example of adverse selection?

• A)People who face the highest risks are the people most likely to buy insurance against these risks.
• B)The residual claimant will have to bear the consequences of the most adverse outcomes.
• C)An individual can influence the probability that she has an accident.
• D)Items in the most popular styles sell out the quickest.
• E)People sometimes mistakenly choose low-quality products.

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Definitions:

Treisman

Likely refers to an individual, possibly Anne Treisman, who is known for her work in cognitive psychology, specifically in attention and perception.

Black Labrador

A specific breed of retriever dog known for its solid black coat, often prized as a companion, service, or working dog.

Short-term Memory

Short-term memory refers to the capacity for holding a small amount of information in an active, readily available state for a short period of time.

Long-term Memory

A type of memory capable of storing information for extended periods, ranging from a few days to decades, and includes facts, experiences, and skills.