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Q. |
An example of adverse selection is |
A. | purchasing a new car sight unseen based on the recommendation of a neighbour. |
B. | high health insurance premiums resulting from the poor health of people who buy policies. |
C. | suppliers who charge more for better quality clothing than for lower quality clothing. |
D. | being talked into buying a low-quality item because the price is lower. |
Answer» B. high health insurance premiums resulting from the poor health of people who buy policies. |
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