Which of the Following Is the Best Example of Adverse

Multiple Choice

Which of the following is the best example of adverse selection?

A) People who face the highest risks are the people most likely to buy insurance against these risks.
B) The residual claimant will have to bear the consequences of the most adverse outcomes.
C) An individual can influence the probability that she has an accident.
D) Items in the most popular styles sell out the quickest.
E) People sometimes mistakenly choose low-quality products.