Define the following terms: a. Asymmetric information b. Adverse selection c. Moral hazard d. Principal–agent problem What are the asymmetric information problems in the market for health insurance?...

Define the following terms: a. Asymmetric information b. Adverse selection c. Moral hazard d. Principal–agent problem What are the asymmetric information problems in the market for health insurance? How do health insurance companies deal with asymmetric information problems? What is an externality? Are there externalities in the market for health care? Briefly explain.