People with Hidden Health Problems Are More Likely to Buy

question 19

Multiple Choice

People with hidden health problems are more likely to buy health insurance than are other people. This is an example of

• A)moral hazard and makes the cost of health insurance higher than otherwise.
• B)moral hazard and makes the cost of health insurance lower than otherwise.
• C)adverse selection and makes the cost of health insurance higher than otherwise.
• D)adverse selection and makes the cost of health insurance lower than otherwise.

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Definitions:

Common Bond

The shared connection or mutual interest that ties members of a group or community together.

Common Identity

A form of social identity that emphasizes unity and shared characteristics among members of a group, fostering a sense of belonging.

Communal Sharing

A relational model theorizing how people in a group share resources and responsibilities without keeping track of individual contributions or distributions.

Entitativity

The perception or degree to which a group of entities is considered to be a coherent, single unit.