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What Would Be the Consequence for Patients of a Law

Question 37

Multiple Choice

What would be the consequence for patients of a law that limited the amount of annual profit a health insurance company could earn?


A) The principal-agent problem would become less severe.
B) The adverse selection problem would become more severe.
C) The moral hazard problem would become more severe.
D) The adverse selection problem would become less severe.
E) The moral hazard problem would become less severe.

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