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Adverse selection in the market for health insurance arises because

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8 years ago

Adverse selection in the market for health insurance arises because

Adverse selection in the market for health insurance arises because
A) many insurance companies care more about profits than they do about providing services for their customers in the event of illness.
B) the federal government intervenes in insurance markets by controlling prices and reimbursement policies.
C) insurance companies are not allowed to charge premiums that are high enough to insure against "worst-case" illness.
D) buyers of insurance know more than insurance companies about the likelihood of an illness for which buyers want insurance.

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Essentials of Economics

Edition: 4^th

Authors: Hubbard, O'Brien

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Repeat after me: 'Calm down. Things are gonna be fine. Things are gonna be all great. Just relax.' Wink Face

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