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:

Attributions

Explanations that individuals create for the causes of their own and others' behaviors and events.

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underestimating the influence of situational factors.

Self-serving Bias

A common tendency to attribute one's successes to personal characteristics and failures to external factors.

Just-world Hypothesis

The cognitive bias that assumes that actions always yield morally fair and fitting consequences, essentially that the world is just.