An Example of Adverse Selection Is

question 54

Multiple Choice

An example of adverse selection is:

• A) a doctor prescribing an unnecessary procedure.
• B) a real estate agent selling a house faster and at a lower price.
• C) a politician using information unknown to voters to profit.
• D) an unhealthy person buying health insurance.

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Definitions:

National Government

The organization through which a nation exercises its authority, conducts its governance, and implements policies over its citizens.

Separation of Powers

The division of governmental authority into distinct branches (legislative, executive, and judicial) to prevent abuse of power.

International Law

A set of rules and agreements that govern the relations and conduct of nations, organizations, and individuals across global boundaries.

National Law

The body of laws and regulations that are enacted by a country’s legislative body and applied within its borders.