The problem of adverse selection in health insurance leads to a situation in which
A) health insurance covers inappropriate items for the population it serves.
B) overinsurance of the premium-paying population occurs.
C) underinsurance of the premium-paying population occurs.
D) the percentage of the premium-paying population that is healthy rises, squeezing unhealthy individuals out of the market.
E) the percentage of the premium-paying population that is unhealthy rises, squeezing healthy individuals out of the market.
E
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The demand curve for a monopoly's product is
A) more inelastic than the market demand for the product. B) more elastic than the market demand for the product. C) undefined. D) the market demand for the product.
A falling natural-employment deficit indicates that
A) the growth rate in the economy has increased. B) the government is following a restrictive fiscal policy. C) the government is following an expansionary fiscal policy. D) the actual surplus is rising.