80 percent of the total number of people in Genovia with health insurance are more than 40 years old.Which of the following economic concepts helps explain this fact?
A) The concept of negative externalities
B) The concept of adverse selection
C) The concept of free riding
D) The concept of positive externalities

Question

Quizplus · Accepted Answer

The fact that 80 percent of people with health insurance in Genovia are over 40 years old suggests adverse selection. This is because younger, healthier individuals may opt out of purchasing health insurance, leaving older, sicker individuals to make up the majority of the insured population.

80 Percent of the Total Number of People in Genovia