Adverse selection is a market process which is occur in those
transactions where asymmetry of information is present means where
one party has more or better information about any product , deal
or insurance than other party.
So according to the question :-
Option 1 - incorrect
Because in most situations which is not about insurance , legal
liabilities and renting services , moral hazard unlikely to occur ,
but in any good whose value is determined after using it , adverse
selection is there.
Option 2 - correct
Adverse selection is a process which occurs through asymmetry of
information and knowledge before agreement
Option 3 - incorrect
Because 1st and 4th option is incorrect
Option 4 - incorrect
Adverse selection is a process which occurs through asymmetry of
information and knowledge before agreement not after the
agreement
Adverse selection Multiple Choice is always present when moral hazard arises relates to unobserved characteristics of...
Multiple-Choice Questions (worth two points each) 1. Which of the following describes the process in which one adopts patterns of behavior that lead to greater life satisfaction? A. wellness B. health C. social determination D. self-efficacy 2. The Stages of Change Model of health behavior change emphasizes that A. change happens as a process. B. people change only when faced with an illness. C. change occurs only when the environment supports it. D. changes are more effective when based on...
Using the book, write another paragraph or two: write 170
words:
Q: Compare the assumptions of physician-centered and
collaborative communication. How is the caregiver’s role different
in each model? How is the patient’s role different?
Answer: Physical-centered communication involves the specialists
taking control of the conversation. They decide on the topics of
discussion and when to end the process. The patient responds to the
issues raised by the caregiver and acts accordingly. On the other
hand, Collaborative communication involves a...
10. Write a one-page summary of the attached paper? INTRODUCTION Many problems can develop in activated sludge operation that adversely affect effluent quality with origins in the engineering, hydraulic and microbiological components of the process. The real "heart" of the activated sludge system is the development and maintenance of a mixed microbial culture (activated sludge) that treats wastewater and which can be managed. One definition of a wastewater treatment plant operator is a "bug farmer", one who controls the aeration...