As fewer families choose to purchase insurance,the cost of premiums will rise,ensuring that fewer,and sicker,families buy insurance.This is an example of

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This scenario describes adverse selection, where only the sicker individuals choose to purchase insurance, leading to increased costs for insurance companies and ultimately increasing premiums. This creates a cycle where healthier individuals may choose to opt out of the insurance market entirely, leading to a smaller pool of insured individuals and higher costs for the remaining insured individuals.

As Fewer Families Choose to Purchase Insurance,the Cost of Premiums