Julia is a 28-year-old nonsmoking, non-drinking female of normal weight. Because of adverse selection in health insurance,
(a) She will be charged less for her premiums than people who are higher risks.
(b) She is less likely to buy health insurance than the average person, because policy premiums are based on expected medical expenditures of people who are less healthy than she is.
(c) When she get health insurance, she will be less likely to take care of herself.
(d) She is more likely than the average person to buy health insurance, because she is more likely to be offered it.
Answer: b