Asked by Muhammad Naeem Nizami on Jun 28, 2024
Verified
Related to the Economics in Practice on page 359: The individual mandate feature of the Affordable Care Act potentially broadens the pool of people who are in the health insurance market. Including young, healthy people in this pool via the mandate should potentially reduce ________ and ________ overall health care costs.
A) adverse selection ; raise
B) asymmetric information; raise
C) adverse selection; lower
D) asymmetric information; have no impact on
Adverse Selection
A situation in markets where buyers and sellers have access to different information, leading to transactions where one party may be at a disadvantage, often discussed in the context of insurance and used cars.
Individual Mandate
A requirement that individuals purchase health insurance or pay a penalty, aimed at ensuring universal coverage in health care systems.
Health Insurance Market
The marketplace where individuals, families, and employers purchase health insurance coverage.
- Evaluate the consequences of adverse selection within insurance markets and the healthcare sector.
Verified Answer
Learning Objectives
- Evaluate the consequences of adverse selection within insurance markets and the healthcare sector.
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