Solved

If a Doctor Knows That an Insurance Company Will Pay

Question 151

Multiple Choice

If a doctor knows that an insurance company will pay for most of a patient's bill, the doctor has more of an incentive to require additional medical procedures and tests, even if the patient may not require them.This is an example of


A) moral hazard.
B) the principle-agent problem.
C) asymmetric information.
D) adverse selection.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions