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Managerial Economics · End Term · 13 Sept 2026 · May 2026 term · Set S2

Managerial Economics End Term 13 Sept 2026 — Question 40

Question 40

+1 markOne correct option

Adverse selection occurs when

  1. A

    A person takes more risks that are not known to the life insurance company because he has life insurance

  2. B

    A person buys life insurance because he has risky lifestyle that is not known to the life insurance company

  3. C

    A person is a risk lover

  4. D

    Pregnant women with health insurance make more doctor visits than uninsured pregnant women

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Correct answer

  • B

    A person buys life insurance because he has risky lifestyle that is not known to the life insurance company

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Question 40 of 43 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 13 Sept 2026, in the May 2026 term (Managerial Economics 13 Sep 26 (Session 2)). It carries 1 mark.

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