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One Consequence of Imperfect Information in the Health Insurance Market

Question 88

Multiple Choice

One consequence of imperfect information in the health insurance market is that


A) less healthy individuals are more likely to buy insurance, driving up the cost of insurance for everyone.
B) the most healthy individuals are more likely to buy insurance, leaving the least healthy without access to health care.
C) health insurance increases the demand for health care and so increases the price of health care.
D) unhealthy individuals are denied health insurance.

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