Which of the following would be an example of an adverse-selection problem?
A) A person in ill health who purchases disability insurance.
B) A person who buys a product that contributes to pollution.
C) A person who purchases home insurance and then is less careful.
D) A person who lobbies for government intervention to settle a property rights dispute.
E) A person who buys extended warranty on a new automobile.
Correct Answer:
Verified
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