An employer can find himself in an adverse selection problem if there are too
A) many applicants for each job.
B) few applicants for each job.
C) many qualified applicants for each job.
D) many underqualified applicants for each job.

Question

Quizplus · Accepted Answer

Adverse selection occurs when the employer is faced with too many underqualified applicants for a job, meaning that they may struggle to identify the best candidate for the role. This is a common problem in industries where there is a high demand for jobs but a low supply of qualified candidates.

An Employer Can Find Himself in an Adverse Selection Problem