________ Would Be Minimized If Hospital Policy Based a Physician's

question 127

Multiple Choice

________ would be minimized if hospital policy based a physician's salary on how healthy patients were following treatment by that doctor rather than the number of patients treated per year.

• A) Moral hazard
• B) Adverse selection
• C) Diminishing returns
• D) Market failure
• E) The principal-agent problem

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Definitions:

Disjunct

A component proposition or statement within a disjunction that, by itself, could be true or false.

Disjunction

A logical operation that results in true if at least one of its component statements is true.

Self-Contradiction

A statement or proposition that inherently contradicts itself, making it logically impossible.

Biconditional

A logical statement that is true if both its components are either true or false together.