1. The Affordable Care Act originally included a requirement for everyone to carry health insurance. In the context of the RS model of adverse selection, what effect does mandating health insurance have on the utility of the robust people who were required to purchase it?

3. How would adverse selection arise in the market for long-term care insurance? How would moral hazard arise?

4. Besides the common practice of charging copayments, what other strategies do health insurers employ to combat moral hazard?

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1 The effect of mandating health insurance on the utility of the robust people in the context of the RS model of adverse selection is as follows In the RS model the market for health insurance is char... View the full answer