Explain the Difference Between Moral Hazard and Adverse Selection

question 21

Essay

Explain the difference between moral hazard and adverse selection.

---

Definitions:

Pathologist

A medical doctor who specializes in the diagnosis of diseases by examining body tissues, cells, and bodily fluids in a laboratory setting.

Neoplasm

An abnormal growth of tissue, which can be benign or malignant, commonly referred to as a tumor.

Malignant Lung Neoplasm

A cancerous tumor in the lungs that has the ability to grow aggressively and spread to other parts of the body.

Bone Scan

A nuclear imaging test that helps diagnose and track several types of bone disease by showcasing the areas of bone metabolism or turnover.