Relating to the Economics in Practice on page 357: 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 is an example of adverse selection, where individuals with private information about their high risk of needing long-term care are more likely to purchase insurance, potentially leading to imbalances in the insurance market.

Relating to the Economics in Practice on Page 357: a Long-Term