John is a 55-year-old male smoker, about 50 pounds overweight, who has high blood sugar and drinks to excess a couple of times each month. Because of adverse selection in health insurance,
A) John is less likely to buy health insurance than the average person, because the average person's policy premiums will be based on his risk, not the average risk.
B) John is more likely to buy health insurance than the average person, because his policy premiums will be based on the average risk, not his personal risk.
C) when John gets health insurance, he will be less likely to take care of himself.
D) when John gets health insurance, he will be more likely to take care of himself.
E) if John doesn't have health insurance already, he will not be able to get it.
Question 2
Which of the following is NOT a key component of every game?
A) Strategies
B) Players
C) Payoffs
D) Cooperation
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