One reason why adverse selection problems arise in health insurance markets is that
A) sick people are more likely to want health insurance than healthy people.
B) because of advances in medical technology, people are living longer. These medical advances are costly and drive up the price of insurance for everyone.
C) fewer men and women are choosing medical careers because of the increase in the cost of malpractice insurance.
D) the average age of citizens of the United States has increased in recent years, and will continue to increase over the next 20 to 30 years. As older citizens retire, more and more of their medical bills will have to be paid by younger workers.
A
You might also like to view...
The foreign exchange rate is defined as the
A) equal to the amount of the current account deficit. B) equal to the amount of the capital account deficit. C) volume of the world currencies traded. D) rate or the speed with which the currencies of the worlds are traded. E) price at which one currency exchanges for another.
A marginally attached worker
i. does not have a job and has not looked for one in the last month. ii. is available and willing to work. iii. must work at least 1 hour per week. A) iii only B) ii only C) ii and iii D) i and ii E) i only
Increases in autonomous spending have an expansionary effect and make ________ levels of real income consistent with a given interest rate
A) lower B) higher C) constant D) none of the above.
For a monopoly to successfully price discriminate, its customers must:
a. feel that the product is a necessity. b. have identical demands. c. be unable to resell the product. d. actively engage in arbitrage.