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:

Heterogeneous Team

consists of members with diverse backgrounds, skills, and perspectives, which can enhance creativity, problem-solving, and innovation within the group.

Gratification

A sense of pleasure or satisfaction gained from achieving something or fulfilling a desire.

Performance Results

This pertains to the outcomes or outputs produced from activities or tasks, often measured against pre-determined standards or objectives.

Participation

The act of taking part or being involved in a particular activity, process, or organization.