Suppose you go to a doctor, but your health insurance plan reimburses you for only 80 percent of the bill. This is an example of:  A. coinsurance. B. a deductible. C. monopsony power. D. a deferred benefit plan.

Match the situation with its most appropriate label. Use each answer only once. ✓ Only sick people purchase health insurance ✓ I'm not as careful with my laptop computer because it is insured ✓ Company employees make personal phone calls during work hours. ✓ A self-employed stock broker rents office space in the most expensive building in the city. A. Adverse selection B. Signaling C. Principal-agent problem D. Moral hazard

Emerging economies’ health systems have different needs from rich countries, primarily because:   a. They have less income   b. They have different population demographics and disease burdens   c. They have fewer medical schools and doctors   d. They have better weather and need less health care 2. The ACA re-organized the non-group market (into so-called Marketplaces in each state) with new rules requiring insurers to sell specific comprehensive benefit packages to all persons not eligible for public or affordable employer-based insurance, regardless of health status, at a common community rated price, AND requiring all to purchase while providing income-related premium and cost-sharing subsidies.  These reforms all work as a package, which is why regulations which allow “escape” from the ACA Marketplaces are so dangerous to the stability of equilibrium.   Which of the following rules proposed or enacted by the Trump Administration would NOT raise premiums…

1. An article in the Economist observes: "Insurance companies often suspect the only people who buy insurance are the ones most likely to collect." What do economists call the problem that is described in the article? If insurance companies are correct in their suspicion, what are the consequences for the market for insurance? Use health insurance as an example.