In Which Situation Is Adverse Selection MOST Likely to Be

question 87

Multiple Choice

In which situation is adverse selection MOST likely to be a problem?

• A)buying tomatoes at the local farmers' market
• B)hiring a new manager to work the night shift
• C)buying a new lawnmower
• D)buying a house directly from the previous owner

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Definitions:

Foot-In-The-Door Phenomenon

A tactic for getting a person to agree to a large request by first setting them up to agree to a modest request.

Cognitive Dissonance

The cognitive dissonance faced by individuals when they hold onto multiple incompatible beliefs, ideas, or values at the same time.

Central Route Persuasion

A technique for persuasion that requires thorough examination and consideration of the message's arguments and evidence in depth.

Small Request

A strategy in compliance that involves making a minor request followed by a larger one to increase the likelihood of the larger request being agreed upon.