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

Question

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The moral hazard problem occurs when individuals with insurance have less incentive to be cautious with their health care spending because they know their insurance will cover it. This can lead to overutilization of health care services, driving up costs for both the insured and the insurance company.

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