Individuals Who Have a Tendency to Default Are Usually More

question 109

Multiple Choice

Individuals who have a tendency to default are usually more willing to pay high interest rates and thus get loans.This describes an example of _____

• A)symmetrical information.
• B)adverse selection.
• C)natural selection.
• D)moral hazard.
• E)the winner's curse.

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Definitions:

Divergent Validity

A measure of validity that ensures an assessment does not strongly correlate with tests from unrelated constructs, thus proving its specificity.

Operational Definition

Definition of a concept that specifies the method used to measure or manipulate the concept.

Reactive Validity

The extent to which the act of measuring influences the measurement or behavior being observed.

Construct Validity

Construct validity is the extent to which a test measures what it claims to be measuring, reflecting the accuracy of an operationalization of a theoretical construct.