As a Result of Adverse Selection Problems in the Health

question 111

Multiple Choice

As a result of adverse selection problems in the health insurance market, it is likely that over time

• A) fewer healthy people will be insured.
• B) fewer unhealthy people will be insured.
• C) fewer healthy and unhealthy people will be insured.
• D) more healthy people will be insured.

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Definitions:

Discrepancy

A divergence or difference between two or more items, situations, or values, often leading to a realization of a problem or a gap that needs addressing.

Effective

The degree to which something achieves its intended result, outcome, or goal with a minimum of wasted effort or expense.

Prescriptive Theories

Prescriptive theories offer specific recommendations or guidelines for actions, aiming to produce desired outcomes based on established principles or empirical findings.

Particular Type

A specific category or class with distinct characteristics that distinguish it from others.