Which of the Following Is Adverse Selection

question 9

Multiple Choice

Which of the following is adverse selection?

• A)the risk associated with selecting stocks in only a few specific companies
• B)the risk that a person will become overconfident in his ability to select stocks
• C)a high-risk person being more likely to apply for insurance
• D)after obtaining insurance a person having less incentive to be careful

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Definitions:

DNS Server

A server on the Internet that translates human-friendly domain names into IP addresses, facilitating the location of computer services and devices.

Registered

Denotes something that has been officially recorded and recognized by an authority or organization.

Fiber Optics

A technology that uses thin strands of glass or plastic fibers to transmit data as pulses of light, enabling high-speed internet and telecommunications.

Internet Backbone

The principal data routes between large, strategically interconnected networks and core routers on the Internet.