Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Chapter 16, Problem 13RQ

How can moral hazard lead to more costly insurance premiums than one was expected?

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What is moral hazard?
What would explain why moral hazard might not occur after the large gains in health insurance coverage?
If people get higher pay from insurance than their premiums, will this increase or decrease the death rate of average persons? Is this an example of moral hazard or adverse selection? How will an insurance company deal with these problems?
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