If the existence of health insurance increases one's incentive to use the health care system more intensively, this is an illustration of

Question

Quizplus · Accepted Answer

The moral hazard problem occurs when having insurance leads to an increase in risky behavior or more intensive use of services because the financial risk is transferred to the insurer. In this context, if health insurance leads to more intensive use of the health care system, it is an example of moral hazard, as individuals may not bear the full cost of their health care decisions.

If the Existence of Health Insurance Increases One's Incentive to Use