Asked by
JONAH DANE BAUTISTA
on Nov 26, 2024Verified
If an individual is less careful about avoiding accidents or illness because she has health insurance, this is an example of
A) the free-rider problem.
B) the moral hazard problem.
C) the adverse selection problem.
D) the Coase theorem.
Health Insurance
Insurance that usually covers the expenses associated with medical and surgical procedures, prescription medications, and at times, dental care for the person insured.
Avoiding Accidents
Strategies or practices implemented to reduce the likelihood of accidents occurring in various contexts, such as workplaces or roads.
Moral Hazard
The risk that one party to a transaction might change their behavior to the detriment of the other party after the transaction has taken place, particularly when the first party is protected from the consequences.
- Comprehend the obstacles and impacts of health insurance accessibility on the demand for health care and its expenses.
Verified Answer
SB
Learning Objectives
- Comprehend the obstacles and impacts of health insurance accessibility on the demand for health care and its expenses.