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Mortal hazard problem and adverse selection problem

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Place an 'M' beside the items in the following list that describe a mortal hazard problem and an 'A' beside those that describe an adverse selection problem:

a. A person with a terminally illness buys several life insurance policies through the email.
b. A person drives carelessly because he or she has automobile insurance.
c. A person who intends to "torch" his warehouse takes out large fire insurance policy.
d. A professional athlete who has a guaranteed contract fails to stay in shape during the off-season.
e. A woman who anticipates having a large family takes a job with a firm that offers exceptional child care benefits.

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Place an 'M' beside the items in the following list that describe a moral hazard problem and an 'A' beside those that describe an adverse selection problem;

Moral hazard is the result of maximizing behavior. A person weighs the costs and benefits of an action, and when benefits exceed costs, he takes the ...

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Diagnoses case study

Case Study One
Present Illness

Mrs. Jones is a 56-year-old Caucasian female who recently moved to Arizona from Minnesota and is a new patient. She has been feeling tired lately, which she attributes to her allergies. She has been taking Claritin®, but for the past month, it has not been working well. She complains of a runny nose that is worse in the morning, associated with sneezing and an itchy throat. She also complains that her breathing is more difficult. She becomes dyspneic on minimal exertion and can hear herself wheezing throughout the day. She reports using the albuterol inhaler more frequently than every 4 hours. Her productive morning cough seems worse, but the color of her sputum has not changed. She denies discolored nasal drainage, headache, facial pain, loss of appetite, chest pain, edema, and fevers.
Medical History

Chronic obstructive pulmonary disease (COPD) and seasonal allergies; complaining of recent inability to sleep through the night
Family History

Her family history is noncontributory.

Claritin® 10 mg q am and Albuterol MDI 2 puffs q 4 hours prn.

Social History

Smoked 2 packs per day for 30 years; quit 2 years ago.
Physical Examination

This is a w/d, w/n who is appropriate and cooperative. Vital signs are: Bp 128/72, pulse 88 and regular, respirations 20. She has dark circles under both eyes (allergic shiners), lungs have bilateral basilar wheezing, heart is regular without murmurs, abd is soft, nontender, and BS present.

O2 saturation 92% at room air at rest; spirometry reveals FEV1 = 45%, FEV1/FVC = 65%.

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