An Example of Adverse Selection Is

question 15

Multiple Choice

An example of adverse selection is

• A)purchasing a new car sight unseen based on the recommendation of a neighbor.
• B)high health-insurance premiums resulting from the poor health of people who buy policies.?
• C)suppliers who charge more for better quality clothing than for lower quality clothing.
• D)being talked into buying a low-quality item because the price is lower.

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Definitions:

In Vitro Fertilization

A medical procedure in which an egg is fertilized by sperm outside the body, in a laboratory setting, before being implanted into a woman's uterus.

Chorionic Villus Sampling

A prenatal test involving the collection of a small sample of the placental tissue to screen for genetic disorders in the fetus.

Amniocentesis

A prenatal diagnostic procedure in which a small sample of the amniotic fluid is extracted from the mother’s uterus and subject to genetic analysis.

Triple X Syndrome

Chromosomal disorder in which an individual is born with three X chromosomes; often unnoticed.