Which of These Shows Adverse Selection in Providing Health Insurance

question 14

Multiple Choice

Which of these shows adverse selection in providing health insurance?

• A)Insurance companies have incentives to avoid insuring those who have chronic health issues.
• B)Health premiums need to be higher for those who are more likely to suffer from chronic illness.
• C)The people who are most likely to suffer with poor health complications are the most likely to seek out health insurance.
• D)People are more likely to be careless with their own health if they have health insurance.

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Definitions:

Ejaculation

The discharge of semen from the male reproductive system.

Manual Stimulation

Physical stimulation of body parts, often referring to sexual arousal processes performed with the hands.

Smooth Muscle

Involuntary, non-striated muscle found in walls of internal organs such as the stomach, bladder, and blood vessels.

Cerebellum

Separate portion of the brain attached to the brainstem at the pons; important in maintaining muscle tone, balance, and coordination of movement.