Relating to the Economics in Practice on Page 360: an Individual

Multiple Choice

Relating to the Economics in Practice on page 360: An individual with a parent who has Huntington's disease has a 50 percent chance of also having the disease, and can use this information when deciding on the purchase of health insurance. This is an example of ________ favoring potential insurance buyers.

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