Governments may intervene in private markets through

The risk that a borrower has a greater understanding about their potential future behavior than a potential lender is known as ________

A) the problem of adverse selection B) the problem of moral hazard C) ornamental torsion D) the asymmetric innovation problem

The costs associated with the overproduction of medical services as a result of comprehensive health insurance are passed on to everyone who has health insurance in the form of higher premiums

a. True b. False