Because Elaine has a family history of significantmedical problems, she buys health insurance,whereas her friend Jerry, who has a healthier family,goes without. This is an example ofa. moral hazard.b. adverse selection.c. signaling.d. screening
Because Elaine has a family history of significantmedical problems, she buys health insurance,whereas her friend Jerry, who has a healthier family,goes without. This is an example ofa. moral hazard.b. adverse selection.c. signaling.d. screening
Chapter12: Medicare
Section: Chapter Questions
Problem 4QAP
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Question
Because Elaine has a family history of significant
medical problems, she buys health insurance,
whereas her friend Jerry, who has a healthier family,
goes without. This is an example of
a. moral hazard.
b. adverse selection.
c. signaling.
d. screening
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