Which of the Following Is an Example of Adverse Selection

question 159

Multiple Choice

Which of the following is an example of adverse selection?

• A)The odds of a fire rise after a building is insured because the person with fire insurance is likely to pay less attention to fire hazards.
• B)Someone who did not install fire alarms and a sprinkler system in a building he owns buys insurance for the building.
• C)Someone with automobile insurance drives more recklessly than someone without insurance.
• D)People prefer to buy new cars rather than used cars.

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Definitions:

Typhoid Carrier

A Typhoid Carrier is a person who harbors the bacteria causing typhoid fever, Salmonella typhi, and can spread the disease to others, often without showing symptoms themselves.

Genetic Susceptibility

The increased likelihood of developing a particular disease based on a person's genetic makeup.

Breast Cancer

A type of cancer that develops from breast tissue, showing signs such as a lump in the breast or a change in breast shape.

Upper Outer Quadrant

A term used to describe a specific area of the breast, often noted in medical exams and procedures for its significance in breast cancer detection.