The example of adverse selection from the options provided is "high health insurance premiums resulting from the poor health of people who buy policies."

Adverse selection is a term used in economics, insurance, and risk management that describes a situation where an individual's demand for insurance (either the propensity to buy insurance or the quantity purchased, or both) is positively correlated with the individual's risk of loss (e.g., higher risks buy more insurance), and the insurer is unable to allow for this correlation in the price of insurance. This may be because of private information known only to the individual (information asymmetry), or because of regulations or social norms.

In the case of the health insurance example, people who are in poor health are more likely to buy health insurance because they know they will need it. This leads to higher premiums for everyone, because the insurance company has to cover the high costs of these unhealthy individuals. This is adverse selection because the insurance company doesn't have complete information about the health of the individuals buying policies, and so they can't accurately price the risk.

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The example of adverse selection from the options provided is "high health insurance premiums resulting from the poor health of people who buy policies."

Adverse selection is a term used in economics, insurance, and risk management that describes a situation where an individual's demand for insurance (either the propensity to buy insurance or the quantity purchased, or both) is positively correlated with the individual's risk of loss (e.g., higher risks buy more insurance), and the insurer is unable to allow for this correlation in the price of insurance. This may be because of private information known only to the individual (information asymmetry), or because of regulations or social norms.

In the case of the health insurance example, people who are in poor health are more likely to buy health insurance because they know they will need it. This leads to higher premiums for everyone, because the insurance company has to cover the high costs of these unhealthy individuals. This is adverse selection because the insurance company doesn't have complete information about the health of the individuals buying policies, and so they can't accurately price the risk.

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The example of adverse selection from the options provided is "high health insurance premiums resulting from the poor health of people who buy policies."

Adverse selection is a term used in economics, insurance, and risk management that describes a situation where an individual's demand for insurance (either the propensity to buy insurance or the quantity purchased, or both) is positively correlated with the individual's risk of loss (e.g., higher risks buy more insurance), and the insurer is unable to allow for this correlation in the price of insurance. This may be because of private information known only to the individual (information asymmetry), or because of regulations or social norms.

In the case of the health insurance example, people who are in poor health are more likely to buy health insurance because they know they will need it. This leads to higher premiums for everyone, because the insurance company has to cover the high costs of these unhealthy individuals. This is adverse selection because the insurance company doesn't have complete information about the health of the individuals buying policies, and so they can't accurately price the risk.

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