A provision of the Affordable Care Act states that private insurance companies cannot deny coverage to anyone because of a preexisting medical condition
By offering health insurance to people with preexisting medical conditions, this provision eliminates ________ for both the insurance company and the policy holder, and eliminates ________ for the insurance company. A) moral hazard; asymmetric information
B) asymmetric information; adverse selection
C) asymmetric information; moral hazard
D) adverse selection; moral hazard
B
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An item has utility for a consumer if it
A) generates enjoyment or satisfaction. B) is scarce. C) is something everyone else wants. D) has a high price.
The two basic types of government regulation are
A) regulation of natural monopolies and regulation of cartels. B) economic regulation and industry regulation. C) social regulation and labor law. D) social regulation and economic regulation.