What Would Be the Consequence for Insurance Companies Allowing Patients

question 113

Multiple Choice

What would be the consequence for insurance companies allowing patients as many treatments as they want?

• 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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