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Because of the High Cost of Health Insurance, Some Young

Question 24

Multiple Choice

Because of the high cost of health insurance, some young adults choose not to buy insurance because they feel they are not likely to become ill. This potentially raises health care costs should uninsured persons become ill and be unable to pay their bills. This is an example of


A) free-ridership.
B) asymmetric information.
C) external benefits.
D) nonrivalry in services.

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