If a health economist is worried that a system of health insurance will break down because those with health insurance will be less likely to eat right and exercise because they will not be financially liable for the health care costs that follow, that economist is focused on the problem of

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Moral hazard refers to the tendency for people to use more health care services or engage in riskier behaviors when they are not directly responsible for paying the full cost of those services. In this case, the health economist is concerned that individuals with health insurance may be less likely to take responsibility for their own health because they are not financially liable for the costs associated with unhealthy behaviors.

If a Health Economist Is Worried That a System of Health