Relating to the Economics in Practice on page 357: An individual with a parent who has Huntington's disease has a 50 percent chance of also having the disease, and can use this information when deciding on the purchase of health insurance. This is an example of ________ favoring potential insurance buyers.

A) moral hazard
B) asymmetric information
C) market signaling
D) adverse selection

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to the other party.

Huntington's Disease

A genetic neurological disorder causing the progressive breakdown of nerve cells in the brain, leading to deterioration in physical and mental abilities.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, often including coverage for preventative care, treatments, and surgeries.