Allowing a patient to get a second opinion on a diagnosis would help reduce:
A) moral hazard.
B) the principal-agent problem.
C) mutually beneficial trades.
D) adverse selection.

Question

Quizplus · Accepted Answer

Allowing a patient to get a second opinion on a diagnosis would help reduce moral hazard, which refers to the situation where one party takes risks because another party bears the cost of those risks. In this case, the patient may be more likely to seek unnecessary treatments if they do not have the chance to get a second opinion. By getting a second opinion, they may be less likely to undergo unnecessary treatments, thereby reducing moral hazard. The other options are not relevant to this scenario.

Allowing a Patient to Get a Second Opinion on a Diagnosis