An increase in the availability of health insurance could be expected to cause the average price of health care to increase.

Question

Quizplus · Accepted Answer

When more people have access to health insurance, the demand for healthcare services increases, resulting in an increase in the average price of healthcare. This phenomenon is known as "moral hazard." When people have insurance, they tend to use healthcare services more often, which increases the overall cost of care. Additionally, the availability of health insurance can fuel the growth of healthcare industries, leading to an increase in the cost of healthcare.

An Increase in the Availability of Health Insurance Could Be