A compulsory government insurance program can avoid the adverse selection problem, and it eliminates the moral hazard problem.

Name: A compulsory government insurance program can avoid the adverse selection problem, and it eliminates the moral hazard problem.
Brand: Quizplus
Rating: 4.9 (48 reviews)

Question

Quizplus · Accepted Answer

A compulsory government insurance program can help mitigate adverse selection by ensuring everyone participates, but it does not eliminate the moral hazard problem, as individuals may still take greater risks knowing they are insured.

A Compulsory Government Insurance Program Can Avoid the Adverse Selection