EC248 quiz 8 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) | GRADED A+ | NEW UPDATE

EC248 quiz 8 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |
GRADED A+ | NEW UPDATE 2025-2026


Mary applied for extended health insurance. The company asked her many
questions about her age, how much she misses work, how much she drank, how
much she smoked and whether or not she visited her family physician on a regular
basis. The insurance company is trying to:
collect as much information as possible to perfectly determine the actuarially fair
premium.
collect as much information as possible on the likelihood of moral hazard.
collect as much information as possible about observable characteristics to risk
adjust.
collect as much information as possible so no asymmetries of information exists. -
ANSWERS collect as much information as possible about observable
characteristics to risk adjust.


John lives in the US and decides to buy health insurance even though he is very
healthy because he could never afford to pay for a surgical procedure if it became
necessary. John is buying insurance due to:
risk aversion
loss aversion
access motive

framing effects - ANSWERS access motive


Which of the following statements is correct: