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corie corie
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Posts: 767
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6 years ago
The problem of adverse selection in insurance results in a situation in which
A) people choose inappropriate or inadequate coverage because they do not understand the complex information in the policies.
B) people choose too much coverage because they do not understand the complex information in the policies.
C) people choose too little coverage because they do not understand the complex information in the policies.
D) unhealthy people become more likely to buy insurance than healthy people, which drives premiums up, which drives even more healthy people away from the market.
E) healthy people become more likely to buy insurance than unhealthy people, which drives premiums up, which drives even more unhealthy people away from the market even though they are the ones who need it most.
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
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oracledarrenoracledarren
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#1
Posts: 455
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6 years ago
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corie Author
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6 years ago
Helped a lot
Ctownsend
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Yesterday
Just got PERFECT on my quiz
Turboturner
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2 hours ago
This helped my grade so much Perfect
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