Related to the Economics in Practice on Page 360: Insurance

question 57

Multiple Choice

Related to the Economics in Practice on page 360: Insurance companies are interested in being legally allowed to obtain the results of genetic testing before deciding on issuing insurance policies to potential buyers, which would lessen the problem of ________ in the health insurance market.

• A) moral hazard
• B) market signaling
• C) adverse selection
• D) risk-loving

---

Definitions:

Calcium Carbonate

Calcium carbonate is a chemical compound, CaCO3, found in rocks as the minerals calcite and aragonite and is the main component of shells of marine organisms, snails, and eggs.

Clay Minerals

A group of hydrous aluminium phyllosilicates, sometimes with variable amounts of iron, magnesium, alkali metals, alkaline earths, and other cations, which are found in soils and sedimentary rocks.

Chemical Ions

Atoms or molecules that have gained or lost one or more electrons, resulting in a net electrical charge.

Slope Failure

A geologic process where a slope collapses abruptly due to gravity, often triggered by saturation, erosion, or earthquakes.