Health Insurance Markets Have a Problem with Insuring People Who

question 128

Multiple Choice

Health insurance markets have a problem with insuring people who are "poor health risks" while many people who are "good health risks" do not buy insurance.This problem is an example of

• A)moral hazard.
• B)adverse selection.
• C)market signaling.
• D)asymmetric information.

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Definitions:

Newsweek

An American weekly news magazine that reports on various aspects of the global news landscape, including politics, business, technology, and culture.

Bloomingdale's

Bloomingdale's is a luxury department store chain in the United States known for offering high-end fashion apparel, accessories, and home goods.

Macy's

An American department store chain known for its wide range of consumer goods, including clothes, accessories, and home products.

Corporate Chain

A series of connected businesses that operate under a parent company or brand.