The government can help solve a market problem with adverse selection in each of the following ways EXCEPT
A)providing insurance.
B)requiring that everyone buy insurance.
C)reducing the need for insurance.
D)providing incentives for buyers to reveal private information.

Question

Quizplus · Accepted Answer

Reducing the need for insurance would not directly address the problem of adverse selection as it does not involve improving the information available to buyers and sellers in the market. The other three options all involve improving information and reducing the asymmetry between buyers and sellers, which can help mitigate adverse selection.

The Government Can Help Solve a Market Problem with Adverse