_____ is consistent with the idea that people with health insurance that protects against high medical expenses will seek more medical care than those without health insurance.
A)Adverse selection
B)Moral hazard
C)Seller-held private information
D)Market disequilibrium

Question

Quizplus · Accepted Answer

Moral hazard refers to the behavior of individuals who have insurance and whose behavior changes as a result of the insurance, leading to increased utilization of healthcare services. In this case, individuals with health insurance may seek more medical care because they are protected from high medical expenses, leading to increased healthcare utilization.

_____ Is Consistent with the Idea That People with Health