Adverse selection is a problem that arises _____ the parties have entered into an agreement.
A)before
B)after
C)either before or after
D)Adverse selection is not related to an agreement between parties.

Question

Quizplus · Accepted Answer

Adverse selection is a problem that arises before the parties have entered into an agreement, as it involves a lack of symmetric information where one party has more or better information than the other.

Adverse Selection Is a Problem That Arises _____ the Parties