Homework Clinic
Social Science Clinic => Economics => Microeconomics => Topic started by: mydiamond on May 24, 2019
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Tim exercises everyday and eats healthy. Cam is a couch potato and smokes. A health insurance company can't tell the difference between Tim and Cam's behavior. As a result, ________ occurs and the health insurance company is likely to offer a policy with ________.
◦ asymmetric information; low premiums and high deductibles
◦ asymmetric information; high deductibles and low premiums
◦ a separating equilibrium; low premiums and high deductibles
◦ a deadweight loss; high deductibles and low premiums
◦ the lemons problem; low premiums and high deductibles
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asymmetric information; low premiums and high deductibles
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thank you
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thank you