Which of the following is a tool used for protectionism? A) ...

[jhjkgdfhk]

Which of the following is a tool used for protectionism?
 
  A) Service tax
  B) Bank rate
  C) Tariffs
  D) Open market operations

Question 2

Why do insurance companies in many developing countries not offer full health insurance coverage to older applicants?
 
  What will be an ideal response?

[gcook]

Answer to Question 1

C

Answer to Question 2

Older applicants are more likely to fall ill than younger applicants. Therefore, if the insurers were to offer full insurance coverage to these customers, they will require a higher premium. If the premium is high, low-risk individuals are less likely to buy the insurance, leading to the problem of adverse selection.

[jhjkgdfhk]

Thanks for the timely response, appreciate it

[lkanara2]

Gracias!