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In a minimum of 250 words, describe the concept known as adverse selection? Explain how does its existence affect the market for health insurance?
List and describe a few examples of insurance companies protect themselves from adverse selection?
Explain moral hazard and how does it affect the demand for health insurance? What approaches do insurance companies use to control its existence?
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This assignment deals with having a general understanding about health insurance industry and the various terminology associated with it like adverse selection and moral hazards.
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