One Consequence of Imperfect Information in the Health Insurance Market

question 88

Multiple Choice

One consequence of imperfect information in the health insurance market is that

• A) less healthy individuals are more likely to buy insurance, driving up the cost of insurance for everyone.
• B) the most healthy individuals are more likely to buy insurance, leaving the least healthy without access to health care.
• C) health insurance increases the demand for health care and so increases the price of health care.
• D) unhealthy individuals are denied health insurance.

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Definitions:

One Eighth

A fraction representing one part of eight equal parts of a whole.

Genetic Counseling

A process that involves advising individuals and families about the genetic risks, conditions, or diseases they may face and the implications for their health.

Prenatal Screening

Medical testing conducted on pregnant women to assess the health and development of a fetus.

Recommended Weight

A health guideline suggesting an optimal weight range based on various factors including height, age, and gender.