A Physical Examination Is Not a Good Screening Device for Life

question 72

Multiple Choice

A physical examination is not a good screening device for life insurance companies if

• A) life-threatening diseases are usually undetected.
• B) doctors cannot be easily bribed to write a good report.
• C) medical history is a good predictor of life expectancy.
• D) one's current state of health is a good predictor of life expectancy.

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Definitions:

Air Pollutants

Substances in the air that can cause harm to humans and the environment, including gases like carbon monoxide and particulate matter.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded in a market.

General R&D

Research and development activities aimed at broadening knowledge or creating new theories, rather than focusing on specific applications.

Externalities

Economic side effects or consequences of commercial activities that affect other parties without this being reflected in market prices.