Author Question: Related to the Economics in Practiceon page 356: Insurance companies are interested in being legally ... (Read 46 times)

james0929 · **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

AISCAMPING · **Reply #1 on:** Apr 19, 2019

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