Relating to the Economics in Practice on Page 357: Huntington's

Multiple Choice

Relating to the Economics in Practice on page 357: Huntington's disease is an inheritable disorder which affects 1 in 10,000 individuals, and since 1993 there has been a test that perfectly predicts the disease. Presently, insurance companies are not legally allowed to inquire about the results of genetic tests. This has led to ________ favoring potential insurance buyers.

A) moral hazard
B) asymmetric information
C) market signaling
D) adverse selection