Moral hazard is consistent with the idea that when people have health insurance that protects against high medical expenses, they tend to
A)seek more medical care.
B)seek less medical care.
C)get sick less often.
D)get sick more often.

Question

Quizplus · Accepted Answer

Moral hazard suggests that individuals may take more risks or behave differently when they are protected against the consequences of their actions. In the case of health insurance, individuals may seek more medical care or treatment than they otherwise might because they are not bearing the full cost of those services. This can lead to increased healthcare utilization and higher overall costs for the insurer.

Moral Hazard Is Consistent with the Idea That When People