The cost of group health insurance is generally lower than if a person buys an individual policy because
A) it is easier for an insurance company to deny claims from a group policy.
B) the problem of adverse selection is reduced.
C) insuring a group of people eliminates the problem of policy holders having more information than the insurance company.
D) this eliminates the problem of moral hazard.
B
You might also like to view...
If, during a deposit expansion, not all money gets redeposited into the banking system and some leaks out as currency, then the real world multiplier is
A) not related to 1/RR. B) smaller than 1/RR. C) equal to 1/RR. D) larger than 1/RR.
The efficacy of tax incentives as an instrument of activist fiscal policy
A) has been proven to be very substantial in the view of most economists. B) is not plagued by a substantial lag between the passage of tax legislation and the resulting investment spending. C) is subject to debate but still is limited by the "legislative lag." D) has been proven to be so limited that it is no longer considered to be a serious option by most economists.