Case Study Questions

question 71

Multiple Choice

Case Study Questions
​Use the following case study to answer questions
Jared Joiner is a 56-year-old African American insurance agent. He is single, eats most meals at restaurants, leads a sedentary lifestyle, and drinks 3-4 beers a day. He is 5'9" tall and weighs 204 pounds (BMI 30) . Mr. Joiner has been feeling particularly fatigued lately and decided to make an appointment with his physician for a check-up. The results of his laboratory tests include a fasting blood glucose level of 121 mg/dL.
-How many of his risk factors for type 2 diabetes can Mr. Joiner control?

• A)1
• B)2
• C)3
• D)4
• E)5

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Definitions:

Adverse Selection

A situation where asymmetric information results in high-risk individuals being more likely to engage in agreements, potentially leading to market failure.

Cafeteria Plan

A type of employee benefit plan that allows workers to choose from a variety of pre-tax benefit options to suit their personal needs.

Fringe Benefit

Additional compensation provided to employees beyond their normal salaries or wages, such as health insurance, pensions, or paid vacations.

Moral Hazard

The situation where one party to an agreement can take risks because the negative consequences of the risk will be borne by another party.