Adverse selection arises because – McqOptions

MCQOPTIONS

1.	Adverse selection arises because
A.	insurance buyers have more information than insurance sellers.
B.	insurance sellers have more information than insurance buyers.
C.	individuals can select which insurance company to patronize.
D.	insurance companies can exercise too much control over who they insure.
Answer» B. insurance sellers have more information than insurance buyers.

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