People with hidden health problems are more likely to buy health insurance than are other people. This is an example of
a. moral hazard and makes the cost of health insurance higher than otherwise.
b. moral hazard and makes the cost of health insurance lower than otherwise.
c. adverse selection and makes the cost of health insurance higher than otherwise.
d. adverse selection and makes the cost of health insurance lower than otherwise.
c
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What is Money?
Consider the budget line in the above figure. If the price of a magazine is $4, then the price of a hamburger is
A) $1.75. B) $3.00. C) $4.00. D) $5.33.
Refer to Scenario 21-1. Based on the information above, what is the level of private saving in the economy?
A) $3 trillion B) $4 trillion C) $5 trillion D) $8 trillion
In a market with positive externalities
A) the efficient level of production is less than what competition will obtain. B) the efficient level of production is equal to what competition will obtain. C) the efficient level of production is more than what competition will obtain. D) there cannot be an efficient level of production.