If insurance companies are required to offer coverage to all interested people, it is said that premiums for each person will be increased.Assume that the insurance market is perfectly competitive.What is the major reason for raising the premium?
A) The insurance companies take advantage of the increased demand and collude.
B) Medical services are more expensive because of increased demand.
C) Less healthy people join the pool of insured and hence increase the risk and the premium.
D) none of the statements associated with this question are correct.
Correct Answer:
Verified
Q47: The winner's curse occurs:
A) only in English
Q48: When a buyer does not observe the
Q49: A consumer spends more time searching for
Q50: Holding the mean constant, the larger the
Q51: When buyers do not observe the quality,
Q52: Which of the following are a means
Q54: Suppose that both buyers and sellers observe
Q55: Suppose that sellers value a good car
Q56: Which of the following statements is not
Q56: Which of the following is a feature
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents