Please solve the question Question 4Which of the following methods reduce adverse selection in insurance markets?I. selling insurance policies to groups of employees in a firmII. requiring medical exams for anyone purchasing life insuranceIII. denying insurance coverage to people with preexisting health conditionsIV. mandating by law that all people must buy health insuranceI, II, III, and IVOI and IIIIII and IIQuestion 5Which of the following statements is (are) TRUE?I. Moral hazard can either increase or decrease the likelihood of an insurance claim.II. Moral hazard is the result of asymmetric information.III. Insurance coverage sets up moral hazard because people don't respond to the incentives offered by thecoverage.I and IIIIIII Use the image below to answer the following question.Assame that the white curve (labelled "Demand") represents an individuals true demand for this particularhealth care service. The coinsurance associated with insurance option 1 (in blue) is likelycoirsuránce with insurance option 2 (in green) is likelyTheP20010050QQ DemandO 50%: 0%0%; 50%O 50%; 75%0%: 75%O75%; 0%In general, the moredemand is the smaller the social loss due to moral hazard.O inelasticO elasticQuestion 10Match the term to the definitionThe amount that the insurancecompany pays the customer whenan insured event occurs.How mach spent out-of-pocketbefore insurance kicks-in1.Premium2.Insurance payoutMonthly fee to enroll in insurance3.DeductibleAfter this, insurance covers 100%of costs4.out-of-pocket-maximumThis occurs when less-riskypeople are more likely to enroll inhealth insurance5.CopayBehavior changes that occurbefore an insured event happensand make that event more likely6.ex-ante moral hazardBehavior changes that occur afteran insured event happens andmake recovering from that eventmore expensive.7. Coinsurance8.ex-post moral hazardThe oversupply of low-qualitygoods, products, or contracts thatresults when there is asymmetricinformation.9.adverse selectionThe fixed amount that is paid fora service at the time service is10. advantageous selectionrendered.The fraction of the medical billthat the consumer is responsiblefor.

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Question 4 Which of the following methods reduce adverse selection in insurance markets? I. selling insurance policies to groups of employees in a firm I1. requiring medical exams for anyone purchasing life insurance III. denying insuranoe coverage to people with preexisting health conditions IV. mandating by law that all people must buy health insurance I, II, III, and IV I and III II OI and II