The pattern in which insurance is purchased more frequently by those who are the most costly for companies to insure is referred to as:
A)adverse selection.
B)statistical discrimination.
C)risk aversion.
D)moral hazard.

Question

Quizplus · Accepted Answer

Adverse selection refers to the pattern in which insurance tends to be purchased disproportionately by those who are most costly for companies to insure.

The Pattern in Which Insurance Is Purchased More Frequently by Those