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Managerial Economics · End Term · 31 Aug 2025 · May 2025 term · Set QDB3

Managerial Economics End Term 31 Aug 2025 — 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 a 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

Show answer

Correct answer

  • B

    a person buys life insurance because he has a 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 31 Aug 2025, in the May 2025 term (IIT M IMPROVEMENT FN EXAM QIA1 31 Aug 2025). It carries 1 mark.

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