Being Linked to a Network of Highly Regarded Contacts Is

question 44

Multiple Choice

Being linked to a network of highly regarded contacts is a form of ________.

• A)personal reinforcement
• B)social credential
• C)mobility
• D)nepotism

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Definitions:

Adverse Selection

A situation where asymmetry of information results in high-risk individuals being more likely to participate in an agreement or market, leading to an inefficient outcome.

Moral Hazard

The situation where one party may take risks because they do not bear the full consequences or financial burden of their actions.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured or provides reimbursement for health expenses.

Incentive

A benefit, reward, or cost that motivates individuals or entities to act in a particular way.