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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.


Definitions:

Existing State

The current conditions or circumstances of a system, situation, or state of affairs.

Desired State

A future condition or situation that an individual or organization aims to achieve.

Perfect Rationality

A decision strategy that is completely informed, perfectly logical, and oriented toward economic gain.

Nobel Prize

A set of annual international awards bestowed in several categories by Swedish and Norwegian institutions in recognition of academic, cultural, or scientific advances.

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