Please, I need the answer for all the question if possible Those in most need of
ID: 1120043 • Letter: P
Question
Please, I need the answer for all the question if possible
Those in most need of insurance are the most willing to pay for insurance and drive up the price of insurance with their illnesses to such a degree that those people who are not as sick leave the market altogether. This is called: 17. a. Adverse Selection b. Moral Hazard Risk Aversion Dis utility of consumption c. d. 18. Health Care costs in the countries in the healthcare video had a. Lower costs than the US b. Greater costs than the US Some higher some lower c.Explanation / Answer
Answer 17. a. Adverse Selection
Adverse selection in insurance is the buying of insurance policy by those who are in high risk zone. Such people are more likely to claim for the insurance amount thus making the insurance costlier for all. It also drives away other insurance buyers who have less risk and less likely to take claim.
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