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    Exam 23: Moral Hazard and Adverse Selection: Informational Market Failures
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    If Insurance Companies Cannot Distinguish Between the Safe People and the Risky
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If Insurance Companies Cannot Distinguish Between the Safe People and the Risky

Question 21

Question 21

True/False

If insurance companies cannot distinguish between the safe people and the risky people in a population because of a lack of information, the companies must charge everyone the same average premium.

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