The Problem with Community Rating Is That It

question 18

Multiple Choice

The problem with community rating is that it:

• A)causes moral hazard.
• B)results in poor-quality health care.
• C)is very unpopular with health care providers.
• D)may cause adverse selection.

---

Definitions:

Loanable Funds

The money available for borrowing in an economy, influenced by savings and investments.

National Saving

The total amount of savings generated within a country, including both private and public savings.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or the true return on investment.

Net Capital Outflow

The difference between a country's purchases of foreign assets and foreign purchases of its assets over a given period.