One of the Affordable Care Act's features was a mandate requiring everyone to have health insurance....

One of the Affordable Care Act's features was a mandate requiring everyone to have health insurance. The mandate feature was included because

		there is too little competition in insurance markets
		there are externalities in the health insurance market
		people purchasing health insurance have imperfect information about their policies
		imperfect information in insurance markets requires that the pool of insured people include a wide range of health risks

Solutions

Expert Solution

Imperfect information in insurance markets requires that the pool of insured people include a wide range of health risks

Explanation: Imperfect information in the health insurance market requires a pool of insured people with a wide range of health risks to diversify the total risk.

Rahul Sunny answered 1 year ago

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