What Would Be the Consequence of a Law That Forced

question 41

Multiple Choice

What would be the consequence of a law that forced patients to pay all of the costs for preventive care?

• A) The adverse selection problem would become more intense.
• B) The moral hazard problem would become more intense.
• C) The adverse selection problem would become less intense.
• D) The moral hazard problem would become less intense.
• E) Both the moral hazard and adverse selection problems would become more intense.

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Definitions:

Unenforceable

Refers to a contract or clause that is not legally binding or enforceable in a court of law due to certain deficiencies or violations of law.

Zoning Ordinances

Regulations enacted by municipal authorities that dictate how property in specific geographic zones can be used.

Municipal Government

The local governing body responsible for administering services and regulations in a city, town, or municipality.

Exterior Boundaries

Designates the outer limits or edges of a property, geographic area, or political jurisdiction.