Adverse Selection Is a Situation in Which One Party to an Economic

question 156

True/False

Adverse selection is a situation in which one party to an economic transaction has less information than the other party.

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Definitions:

Ultimate Attribution Error

A bias in which negative behaviors by out-group members are attributed to their character, while similar actions by in-group members are attributed to situational factors.

Law Of Small Numbers

A cognitive bias where people infer broader conclusions from a small set of observations than is statistically warranted.

Bias

A tendency to lean in a certain direction, often to the detriment of an open mind, leading to partial judgment or prejudice.

SDO Individuals

Individuals high in Social Dominance Orientation, a personality trait characterized by a preference for inequality among social groups.