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Author Question: What is one reason car insurance seems much cheaper than health insurance? A) Health insurance ... (Read 98 times)

kshipps

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What is one reason car insurance seems much cheaper than health insurance?
 
  A) Health insurance entails more idiosyncratic than systematic risk, and therefore the gains to diversification are more dramatic.
  B) Car insurance entails more systematic than idiosyncratic risk, and therefore the gains to diversification are more dramatic.
  C) Health insurance entails more systematic than idiosyncratic risk, and therefore there are fewer gains to diversification.
  D) Health insurance is manipulated through market power, and car insurance is not.

Question 2

One reason health insurance is very expensive is because
 
  A) it is likely a nearly fair insurance policy.
  B) it is subject to manipulation through market power.
  C) the government doesn't regulate the industry enough.
  D) it is likely an unfair insurance policy.


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bigsis44

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kshipps

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)


isabelt_18

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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