Relating to the Economics in Practice on page 356: A long-term study of Huntington's disease patients found that individuals who carry the Huntington's disease genetic mutation are up to five times as likely as the general population to buy long-term care insurance. This is an example of ________ in the health insurance market.
A) moral hazard
B) risk-loving
C) adverse selection
D) market signaling

Question

Quizplus · Accepted Answer

This scenario is an example of adverse selection in the health insurance market. Adverse selection occurs when individuals who are at a higher risk of needing insurance are more likely to purchase it, leading to an imbalance of healthy and sick individuals in the insurance pool. In this case, individuals with the Huntington's disease genetic mutation are more likely to purchase long-term care insurance than the general population due to their higher risk of needing long-term care.

Relating to the Economics in Practice on Page 356: a Long-Term