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Which of the Following Is an Example of Adverse Selection

Question 38

Multiple Choice

Which of the following is an example of adverse selection?


A) The foulest-tasting medicine is often the most effective.
B) Having secured a loan,a business manager is more likely to have a lavish office party than to buy new equipment.
C) The clientele at a low-price restaurant are unlikely to leave generous tips.
D) The shiniest packaging often contains disappointment.

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