If There Is Adverse Selection in the Health Insurance Market

question 47

Multiple Choice

If there is adverse selection in the health insurance market then this means that:

• A) insurance companes can identify all the health problems facing its custamers
• B) the price of health insurance may be greater than the costs of cavering the average person's health risks
• C) peaple winth 5evere but hidden health problems areless likely to buy health insurance than ather peaple
• D) people in average health are encauraged to purchase health insurance

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Definitions:

Business Customer

An entity, typically a company or organization, that purchases goods or services for use in the production of other goods and services, rather than for personal use.

Missionary Salespeople

Sales representatives who promote their company's products indirectly, often by educating and building relationships with intermediaries rather than selling directly to end users.

Promotional Activities

Marketing efforts aimed at increasing awareness and sales of a product or service, often through advertising, discounts, or public relations campaigns.

Sales Orders

Sales orders are formal documents issued by a buyer to a seller specifying the products, quantities, and agreed prices for products or services the seller will provide.