An Implication of Asymmetric Information in the Insurance Market Is

question 44

Multiple Choice

An implication of asymmetric information in the insurance market is that:

• A) insurance comparaes have perfect konowlede about the health problems of those who purchase insurance
• B) the price of health insurance may reflect the costs of a healthier-than-everage person
• C) peaple with preater hidenen health prablems are mare ligely to buy health insurance than other people
• D) people in average health are encauraged to purchase health insurance

---

Definitions:

Painful Blisters

Fluid-filled bumps on the skin that are often caused by friction, burns, or infections and can cause discomfort.

Herpes Simplex Virus

A virus causing contagious sores, most often around the mouth or on the genitals.

Sanitization

is the process of cleaning and disinfecting surfaces or objects to reduce the presence of harmful microorganisms to safe levels.

Communicable Disease

A contagious illness that can spread from one person to another, whether through direct contact or an indirect path.