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Principles of Microecnomics by Gregory Mankiw 7th or 8th edition. The health insurance reform signed into...

Principles of Microecnomics by Gregory Mankiw 7th or 8th edition. The health insurance reform signed into law by President Obama in 2010 included the following two provisions: 1. Insurance companies must offer health insurance to everyone who applies and charge them the same price regardless of a person’s pre-existing health conditions. 2. Everyone must buy health insurance or pay a penalty for not doing so. a. Which of these policies on its own makes the problem of adverse selection worse? Explain. b. Why do you think the policy you identified in part “a” was included in the law? c. Why to you think the other policy was included in the law?

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