Suppose You Are Covered Under Health Insurance or Belong to a Health

Multiple Choice

Suppose you are covered under health insurance or belong to a Health Maintenance Organization (HMO) , and you are insured against all or most of the costs of visits to the doctor. As a result you are likely to make greater use of medical services of all kinds. This tendency of people with insurance to change their behavior in a way that leads to more claims against the insurance company is called

A) adverse selection.
B) moral hazard.
C) screening
D) signaling.