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14 Feb 2019

1.Choose the correct statement.

A.Adverse selection arises in health insurance because some of the healthiest people choose to be​ uninsured, at least during their younger years.

B.Moral hazard arises in health insurance because once​ insured, a person has less incentive to adopt a healthy lifestyle.

C.In the market for health​ insurance, the buyers have private information and in the market for health​ care, the sellers have private information.

D.All of the above are correct.

2.Choose the statement that is incorrect.

A.93 million people are covered by Medicare and Medicaid.

B.The government spends​ $10,387 per person per year on Medicare and Medicaid.

C.About 48 million people limit their​ health-care costs by using an HMO.

D.The cost of private insurance per person covered is 46 percent of the cost of the government programs.

3.Without knowledge about driver​ types, there is​ _______ equilibrium in the market for car insurance.

A.a pooling

B.an unfair

C.an asymmetric

D.a separating

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Elin Hessel
Elin HesselLv2
16 Feb 2019

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