Compared to the case in which a monopoly insurer offers the consumer a contract, if insurance is competitively provided:
a. any moral hazard or adverse-selection problem is alleviated.
b. any moral hazard or adverse-selection problem is worsened.
c. the essence of any moral hazard or adverse-selection problem would not change much.
d. insurers would no longer offer menus of contracts.
c
You might also like to view...
As long as there is some substitution effect in response to a change in the relative price of a good, there will be an excess burden from a tax
a. True b. False
When government purchases increase, the spending multiplier indicates the _____
a. amount of movement along the aggregate demand curve b. amount of movement along the aggregate supply curve c. size of the rightward shift of the aggregate demand curve at a given price level d. size of the rightward shift of the aggregate supply curve at a given price level e. size of the expansionary gap