Which of the following is an example of self selection?
A) A buyer who makes a large raise in bid at an auction to discourage other bidders.
B) A doctor who performs a large number of in-office tests and is paid per test.
C) An elderly couple who elect a generous medical insurance policy.
D) A CEO who takes certain self-interested actions that diminish overall shareholder value.
E) A pitcher (about to sign with a new team) who is aware of a nagging elbow pain.

Question

Quizplus · Accepted Answer

Self selection occurs when individuals or groups choose to participate in a certain activity or select a certain option based on their preferences or characteristics. In this case, the elderly couple is selecting a medical insurance policy that is generous, indicating that they have a higher need or preference for medical coverage.

Which of the Following Is an Example of Self Selection