Relating to the Economics in Practice on Page 357: a Long-Term

question 58

Multiple Choice

Relating to the Economics in Practice on page 357: A long-term study of Huntington's disease patients found that individuals who carry the Huntington's disease genetic mutation are up to five times as likely as the general population to buy long-term care insurance. This is an example of ________ in the health insurance market.

• A) moral hazard
• B) risk-loving
• C) adverse selection
• D) market signaling

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Definitions:

Hippocampus

A major component of the brains of humans and other vertebrates, playing critical roles in the consolidation of information from short-term memory to long-term memory and in spatial memory that enables navigation.

Procedural Memories

A type of long-term memory that involves how to perform different actions and skills essentially, how we remember to do things.

Long-Term Memories

A type of memory capable of storing large amounts of information for potentially unlimited durations, from days to decades.

Declarative Memories

Memories that can be consciously recalled, such as facts and events, and articulated.