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:

Psychological Impact

The effect on an individual's mental health and emotional state due to various factors or experiences.

Erikson's Stages

A theory by Erik Erikson outlining eight stages of psychosocial development from infancy to adulthood, emphasizing crisis and resolution.

Antisocial Behaviour

Actions that harm or lack consideration for the well-being of others, often violating social norms or laws.

Havighurst

Refers to Robert Havighurst, an American psychologist known for his research on human development and aging, and the concept of developmental tasks.