Tim exercises everyday and eats healthy. Cam is a couch potato and smokes. A health insurance company can't tell the difference between Tim and Cam's behavior. As a result, Tim will be offered a policy with a _____ and Cam will be offered a policy with a ______. A. low deductible; low premium B. low deductible; low deductible C. high deductible; low deductible D. high deductible; high deductible E. low deductible;
Tim exercises everyday and eats healthy. Cam is a couch potato and smokes. A health insurance company can't tell the difference between Tim and Cam's behavior. As a result, Tim will be offered a policy with a _____ and Cam will be offered a policy with a ______. A. low deductible; low premium B. low deductible; low deductible C. high deductible; low deductible D. high deductible; high deductible E. low deductible;
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Tim exercises everyday and eats healthy. Cam is a couch potato and smokes. A health insurance company can't tell the difference between Tim and Cam's behavior. As a result, Tim will be offered a policy with a _____ and Cam will be offered a policy with a ______.
A.
low deductible; low premium
B.
low deductible; low deductible
C.
high deductible; low deductible
D.
high deductible; high deductible
E.
low deductible; high premium
Transcribed Image Text:Tim exercises everyday and eats healthy. Cam is a couch potato and smokes. A health insurance company can't tell the difference between Tim and Cam's
behavior. As a result, Tim will be offered a policy with a
and Cam will be offered a policy with a
O A. low deductible; low premium
O B. low deductible; low deductible
OC. high deductible; low deductible
O D. high deductible; high deductible
O E. low deductible; high premium
Expert Solution
Step 1
The main information in the question:
*Insurance company not able to differentiate the behaviour of Tim and Cam.
*Tim follow healthy routine.
* Cam does not follow a healthy diet.
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