Answered: If you buy an insurance policy with a…

If you buy an insurance policy with a high deductible and co-payments, you would end up paying a. A higher premium b. A lower premium c. The premium of a low risk individual d. Roth B&C

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter16: Information, Risk, And Insurance

Section: Chapter Questions

Problem 15RQ: How can deductibles, copayments, and coinsurance reduce moral hazard?

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Question

If you buy an insurance policy with a high deductible and co-payments, you would end up paying
a. A higher premium
b. A lower premium
c. The premium of a low risk individual
d. Both B&C

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