The Adverse Selection Problem in Healthcare Occurs Because People Who

question 54

True/False

The adverse selection problem in healthcare occurs because people who are healthier are less likely to buy health insurance because they are less likely to need it.

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Definitions:

Expectancy Theory of Motivation

A psychological theory suggesting that an individual's motivation is influenced by their expectation of achieving desirable outcomes through their actions.

Instrumentality

A person’s belief that various outcomes will occur as a result of task performance.

Expectancy Theory of Motivation

A theory suggesting that individuals are motivated to act in a certain way based on their expectation that their actions will lead to their desired outcome.

Valence

The value a person assigns to work-related outcomes.