1. On page 9.18 - 9.19 of your textbook, there is a discussion about Actuarial Equity versus Social Equity related to the development of insurance rates. Read this discussion in the text and then' the article: Insurance Fears DNA Test in the Adverse Selection folder under Topic 9.
a. Explain how the role of asymmetric information is different in the context of genetic testing than it is the context of determining health behaviors, e.g., tobacco use.
b. This question is related to the risk of breast cancer only. The tests for the breast cancer gene are BRCA1 and BRCA2. If a woman does not get tested for the breast cancer gene, can she adversely select into a better risk pool with respect to her risk of breast cancer?