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Relating to the Economics in Practice on Page 357: Huntington's

Question 120

Multiple Choice

Relating to the Economics in Practice on page 357: Huntington's disease is an inheritable disorder which affects 1 in 10,000 individuals, and since 1993 there has been a test that perfectly predicts the disease. Presently, insurance companies are not legally allowed to inquire about the results of genetic tests. This has led to ________ favoring potential insurance buyers.


A) moral hazard
B) asymmetric information
C) market signaling
D) adverse selection

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