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Which of the Following Is Not an Example of an Adverse

Question 69

Multiple Choice

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


A) A homeowner purchases a refrigerator that the seller knows has a history of leaking.
B) A highly productive worker quits her job after a salary cut knowing that she can make more at a different job.
C) A major league baseball player performs poorly in his second season after signing a multi-million dollar contract.
D) A contractor uses low quality materials for construction but charges for higher quality materials.

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