Because Don Has Health Insurance,he Is More Likely to See

question 29

Multiple Choice

Because Don has health insurance,he is more likely to see the doctor when he has a cold.This is an example of

• A) adverse selection.
• B) moral hazard.
• C) the lemons problem.
• D) both moral hazard and adverse selection.
• E) private information.

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Definitions:

Mentally Incapacitated

A condition where an individual is unable to make informed decisions or handle their own affairs due to mental limitations or dysfunction.

Rules of Society

The norms, customs, and laws that regulate individual and collective behavior within a community or society.

Insanity Defense

A legal defense where the defendant claims they were not responsible for their actions due to psychiatric illness at the time of the crime.

Chronically Insane

A term no longer widely used, historically referring to individuals with long-term, severe mental health conditions.