Question

One reason why adverse selection problem arise in health insurance markets is that

a. Sick people are more likely to purchase health insurance than healthy people.
b. Because of advances in medical technology, people are living longer. These medical
advances are costly and drive up the price of insurance for everyone.
c. The average age of citizens of the United States has increased in recent years, and
will continue to increase over the next 20 to 30 years. As older citizens retire, more and
more of their medical bills will have to be paid by younger workers.
d. Fewer men and women are choosing medical careers because of the increase in the
cost of malpractice insurance.