An article in the Economist magazine observes: Insurance companies often suspect the only people who buy insurance

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An article in the Economist magazine observes:

“Insurance companies often suspect the only people who buy insurance are the ones most likely to collect.”

a. What do economists call the problem being described in the article?

b. If insurance companies are correct in their suspicion, what are the consequences for the market for insurance?

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Money Banking And The Financial System International Edition

ISBN: 978-1292000183

2nd Edition

Authors: R. Glenn Hubbard ,Anthony P Obrien

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Question Posted: Mar 16, 2024 11:00 PM

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An article in the Economist magazine observes: Insurance companies often suspect the only people who buy insurance

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Money Banking And The Financial System International Edition

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