11. In health insurance markets asymmetric information between agents leads to adverse selection. T/F? With an example, explain how asymmetric information in the health insurance context does or does not lead to adverse selection.
17. A fair and partial insurance is more preferable as it maximizes risk-averse individual's utility and decreases overall healthcare costs in the society. T/F? Why?
18. In a pooling equilibrium, the insurance company offers two contracts that result in high-risk and low-risk types choose different contracts. T/F? Why?

Question

11. In health insurance markets asymmetric information between agents leads to adverse selection. T/F? With an example, explain how asymmetric information in the health insurance context does or does not lead to adverse selection.
17. A fair and partial insurance is more preferable as it maximizes risk-averse individual's utility and decreases overall healthcare costs in the society. T/F? Why?
18. In a pooling equilibrium, the insurance company offers two contracts that result in high-risk and low-risk types choose different contracts. T/F? Why?

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