The problem of in insurance markets is that insurance companies are unable to . Group of answer choices

adverse selection, differentiated those with high risk and low risk

Explanation:

Adverse selection refers to the selection in which an individual gained the insurance at a cost but it is below the level of risk. In other words we can say that the applicant pay the lower amount of premium in case of higher premium charged by the company as the company is not aware of the fact

In the given case, the problem of adverse selection is there that unable to differentiate between a high level of risk and lower level of risk

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;

answerthe above statement is (true);