If There Is Adverse Selection in the Health Insurance Market

question 14

Multiple Choice

If there is adverse selection in the health insurance market then this means that:

• A)insurance companies can identify all the health problems facing its customers
• B)the price of health insurance may be greater than the costs of covering the average person's health risks
• C)people with severe but hidden health problems are less likely to buy health insurance than other people
• D)people in average health are encouraged to purchase health insurance

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Definitions:

Cartilaginous Joint

A joint where bones are joined together by cartilage, allowing for limited movement.

Synovial Joint

A type of movable joint characterized by a space (joint cavity) containing synovial fluid, found in the knees, elbows, and other parts of the body.

Epiphyseal Plate

A layer of cartilage in long bones that is involved in bone growth and lengthening during childhood and adolescence.

Synovial Fluid

A thick, lubricating fluid found in the cavities of synovial joints, reducing friction between cartilage and other tissues in the joint to facilitate smooth movement.