In the Health Insurance Market, Adverse Selection Occurs When

question 74

Multiple Choice

In the health insurance market, adverse selection occurs when

• A) chronically ill people buy health insurance.
• B) insured people go to the doctor unnecessarily.
• C) patients sue their doctor.
• D) people with health insurance tend to behave more recklessly.

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Definitions:

Motivation Psychologist

A psychologist who specializes in understanding what drives human behavior and motivation, focusing on how individuals seek, engage, and persist in activities.

Democratic Leadership Style

A leadership approach where decisions are made with the input of team members, fostering a sense of collaboration and empowerment among the group.

Directive Leadership Style

A leadership approach characterized by providing clear instructions, setting defined goals, and directly supervising tasks and performances.

Individual Motives

The personal drives, desires, and reasons that propel individuals to act in certain ways.