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Author Question: Relating to the Economics in Practiceon page 356: A long-term study of Huntington's disease patients ... (Read 23 times)

Bernana

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on: Apr 19, 2019

Question 1

Relating to the 
Economics in Practice on page 356: Huntington's disease is an inheritable disorder which affects 1 in 10,000 individuals, and since 1993 there has been a test that perfectly predicts the disease. Presently, insurance companies are not legally allowed to inquire about the results of genetic tests. This has led to ________ favoring potential insurance buyers.


◦ moral hazard
◦ asymmetric information
◦ market signaling
◦ adverse selection

Question 2

Relating to the 
Economics in Practice on page 356: A long-term study of Huntington's disease patients found that individuals who carry the Huntington's disease genetic mutation are up to five times as likely as the general population to buy long-term care insurance. This is an example of ________ in the health insurance market.


◦ moral hazard
◦ risk-loving
◦ adverse selection
◦ market signaling
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Bernana on Apr 19, 2019

cdmart10

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Reply #1 on: Apr 19, 2019
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Bernana

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Reply #2 on: Apr 19, 2019
Thank you!


cdmart10

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Reply #3 on: Apr 19, 2019
Always glad to help...


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