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Which of the following represents the problem of adverse selection for a health insurance company? Insured people tend to behave more dangerously and take greater
Which of the following represents the problem of adverse selection for a health insurance company?
Insured people tend to behave more dangerously and take greater health risks.
People with unhealthy habits are more likely to sign up for health insurance than healthy people.
When insured people become ill, they have difficulty paying insurance premiums.
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