If a hospital knows that an insurance company will pay for most of a patient's bill,the hospital has more of an incentive to require additional medical procedures and tests,even if the patient may not require them.This is an example of
A) moral hazard.
B) the principle-agent problem.
C) asymmetric information.
D) adverse selection.
Correct Answer:
Verified
Q47: In the principal-agent relationship,the principal is
A)the owner
Q57: What is the term that describes a
Q64: Suppose that in a market for used
Q69: Because of asymmetric information,most used cars that
Q70: Economists refer to the actions people take
Q78: The study of the problems due to
Q89: In the United States, the bulk of
Q160: Which of the following Nobel laureates became
Q164: Figure 7-2 Q168: Figure 7-2 ![]()
![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents