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Under the Small Business Health Options Program (SHOP)provision of the Health

Question 86

Multiple Choice

Under the Small Business Health Options Program (SHOP) provision of the health care plan,a small firm's employees would be pooled with the employees of other small firms.When an insurance plan covers a large number of people,


A) moral hazard is reduced.
B) adverse selection problems are reduced.
C) asymmetric information issues are eliminated.
D) negative externalities become more pronounced.

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