A Person in Poor Health Trying to Buy Supplemental Health

question 17

Multiple Choice

A person in poor health trying to buy supplemental health insurance is an example of ________.

• A) moral hazard
• B) adverse selection
• C) a Texas hedge
• D) actuarial error

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Definitions:

Fat Accumulation

The process of storing excess fats in the body, often leading to conditions such as obesity or other health risks.

Metabolism

The chemical processes that occur within a living organism in order to maintain life, including the conversion of food to energy.

Testosterone Levels

The amount of the male sex hormone present in a body, which plays a key role in male reproductive tissues and the development of secondary sexual characteristics.

Biological Inevitability

The concept that certain biological outcomes are predetermined by genetic or physiological factors, unavoidable by personal or environmental influence.