The correct answer is: C. Abuse of health insurance.
Moral hazard is a situation in which people make choices that are less beneficial to society as a whole because they are insured against the risks of those choices. In the context of health insurance, moral hazard can lead to people seeking unnecessary medical care or engaging in risky behaviors because they know that they will not have to pay for the consequences.
Adverse selection is a situation in which people who are more likely to use health care services are more likely to purchase health insurance. This can lead to higher premiums for everyone, as insurers must charge enough to cover the costs of the people who are most likely to use their services.
Community rating is a system of health insurance pricing in which everyone pays the same premium, regardless of their health status. This is designed to prevent adverse selection by making health insurance more affordable for people who are healthy.
Risk pooling is a way of spreading the risk of health care costs across a large group of people. This is done by having everyone in the group contribute to a pool of money that is used to pay for the health care costs of the people in the group. This is designed to make health insurance more affordable for everyone.
I hope this helps!