Relating to the Economics in Practice on Page 356: an Individual

question 90

Multiple Choice

Relating to the Economics in Practice on page 356: An individual with a parent who has Huntington's disease has a 50 percent chance of also having the disease, and can use this information when deciding on the purchase of health insurance. This is an example of ________ favoring potential insurance buyers.

• A) moral hazard
• B) asymmetric information
• C) market signaling
• D) adverse selection

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Definitions:

Cellular Slime Mold

A type of single-celled organism that can aggregate to form multicellular structures under certain conditions, often used in studies of development and cell signaling.

Behavior

Actions or reactions of an organism, often in response to its environment.

Inclusive Fitness

Inclusive fitness is a concept in evolutionary biology that explains an organism's total genetic contribution to the next generation, including its own offspring and the offspring of its relatives.

Indirect Component

A factor or variable that contributes to an outcome through its effects on other variables, rather than directly.