In the health insurance market, moral hazard occurs when
A) chronically ill people buy insurance.
B) insured people go to the doctor unnecessarily.
C) patients sue their doctor.
D) chronically ill people refuse appropriate medical treatment.
B
You might also like to view...
Corporations account for
A) the largest proportion of business revenues generated in the United States. B) the largest amount of taxes paid to the U.S. government. C) the largest number of firms in the United States. D) the smallest amount of revenues in the United States.
The circular flow model indicates that income flows from households to firms through product markets and back from firms to households through factor markets. Is the total amount spent by all households equal to the total income that flows back to all
households? Why or why not? Is the amount spent by each individual household equal to the amount that flows back to that specific household? Why or why not?