In the Market for Insurance,the Adverse Selection Problem Arises Because

Multiple Choice

In the market for insurance,the adverse selection problem arises because

A) fair odds are different for different people,and the insurance company cannot tell who is who.
B) people tend to behave more recklessly when they are insured.
C) some events simultaneously affect a large number of people.
D) insurance companies must tilt the odds in their favor to cover their basic operating costs.