People with Hidden Health Problems Are More Likely to Buy

question 19

Multiple Choice

People with hidden health problems are more likely to buy health insurance than are other people. This is an example of

• A)moral hazard and makes the cost of health insurance higher than otherwise.
• B)moral hazard and makes the cost of health insurance lower than otherwise.
• C)adverse selection and makes the cost of health insurance higher than otherwise.
• D)adverse selection and makes the cost of health insurance lower than otherwise.

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Definitions:

Larynx

A part of the throat involved in breathing, producing sound, and protecting the trachea against food aspiration.

Voice Box

Also known as the larynx, it is an organ in the throat involved in breathing, producing sound, and protecting the trachea against food aspiration.

Bronchial Epithelium

The layer of cells lining the airways of the lungs, involved in lung defense mechanisms.

Bronchitis

An inflammation of the bronchi (large and medium-sized airways) in the lungs that causes coughing and breathing difficulties.