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Which of the following is not an example of adverse selection? A

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Which of the following is not an example of adverse selection?

A. A person becomes less vigilant about preventing a loss once he is insured against that loss.

B. The seller of a used car has better information about the quality of the car than a prospective buyer.

C. An individual knows more about his health than an insurance company.

D. A person applying for a loan has a greater sense of her ability to repay the loan than a bank does.

Option 1

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