Because People with Hidden Health Problems Are More Likely to Buy

question 103

Multiple Choice

Because people with hidden health problems are more likely to buy health insurance than are other people,

• A) the price of health insurance reflects the costs of a sicker-than-average person.
• B) the price of health insurance is too low, relative to the socially-optimal price.
• C) people in average health may be encouraged to buy too much health insurance, relative to the socially-optimal quantity.
• D) the Condorcet Paradox suggests that people who are sicker than average will ultimately buy more health insurance.

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Definitions:

AIO Statements

Statements concerning activities, interests, and opinions used in lifestyle or psychographic segmentation to understand consumer behaviors.

Interests

Preferences or areas of focus that hold an individual's attention and enthusiasm, often leading to exploration, engagement, and satisfaction in learning or activities.

Opinions

Personal views or judgments formed about something, not necessarily based on fact or knowledge.

AIOs

Activities, Interests, and Opinions, a framework used in marketing and sociology to understand consumer behavior by analyzing their daily activities, interests, and opinions.