People with Hidden Health Problems Are More Likely to Buy

Multiple Choice

People with hidden health problems are more likely to buy health insurance than are other people. This is an example of

A) moral hazard and makes the cost of health insurance higher than otherwise.
B) moral hazard and makes the cost of health insurance lower than otherwise.
C) adverse selection and makes the cost of health insurance higher than otherwise.
D) adverse selection and makes the cost of health insurance lower than otherwise.