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Author Question: Related to the Economics in Practiceon page 356: Insurance companies are interested in being legally ... (Read 22 times)

james0929

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on: Apr 19, 2019

Question 1

Relating to the 
Economics in Practice on page 356: An individual with a parent who has Huntington's disease has a 50 percent chance of also having the disease, and can use this information when deciding on the purchase of health insurance. This is an example of ________ favoring potential insurance buyers.


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

Question 2

Related to the 
Economics in Practice on page 356: Insurance companies are interested in being legally allowed to obtain the results of genetic testing before deciding on issuing insurance policies to potential buyers, which would lessen the problem of ________ in the health insurance market.


◦ moral hazard
◦ market signaling
◦ adverse selection
◦ risk-loving
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by james0929 on Apr 19, 2019

AISCAMPING

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Reply #1 on: Apr 19, 2019
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james0929

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Reply 2 on: Apr 19, 2019
Great answer, keep it coming :)

Laurenleakan

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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