Adverse Selection Is Said to Exist When an Individual

Multiple Choice

Adverse selection is said to exist when an individual

A) is not able to take advantage of another individual.
B) has the incentive to,and is able to,shift costs to another individual.
C) selects a product which has adverse externalities.
D) purchases a lot of insurance because he/she knows that he/she is at high risk.
E) is averse to certain products.