The adverse selection problem is most likely in which of the following occupations?

Question

Quizplus · Accepted Answer

The adverse selection problem is more likely to occur in occupations where the quality of the service cannot be easily observed by the customers, such as in the case of college professors. In contrast, in occupations like waiter/waitress or supermarket cashier, the quality of the service can be easily observed by the customers, reducing the likelihood of adverse selection. Barber and tightrope walker are not good or relevant options for this question.

The Adverse Selection Problem Is Most Likely in Which of the Following