Relating to the Economics in Practice on Page 360: an Individual

question 2

Multiple Choice

Relating to the Economics in Practice on page 360: An individual with a parent who has Huntington's disease has a 50 percent chance of also having the disease, and can use this information when deciding on the purchase of health insurance. This is an example of ________ favoring potential insurance buyers.

• A) moral hazard
• B) asymmetric information
• C) market signaling
• D) adverse selection

---

Definitions:

Terabytes

A unit of digital storage measurement equal to approximately one trillion bytes, often used to specify the size of large data or disk capacities.

Megabytes

A unit of digital information storage equal to 1,024 kilobytes or approximately 1 million bytes.

Kilobytes

A unit of digital information equal to 1,024 bytes, used to measure the size of data files and storage capacity.

Cloud

A technology enabling access to computing resources, like servers, storage, and applications, over the internet rather than from local hardware.