Suppose you go from being uninsured to buying a health insurance policy.You respond by jumping out of a perfectly good airplane for the first time-attached to a parachute,of course.This behavior is best characterized as:

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This behavior is best characterized as moral hazard, which refers to the phenomenon where individuals are more likely to take risks or consume health care services that they would not have taken or consumed had they not had insurance. In this case, the individual feels more protected or secure with the health insurance policy, and therefore engages in a risky behavior.

Suppose You Go from Being Uninsured to Buying a Health