Which of the Following Is an Example of Moral Hazard

question 1

Multiple Choice

Which of the following is an example of moral hazard?

• A) A buyer who makes a large raise in bid at an auction to discourage other bidders.
• B) A doctor who performs a large number of in-office tests and is paid per test.
• C) An elderly couple who elect a generous medical insurance policy.
• D) A board of directors that is trying to refine the compensation system for its CEO.
• E) A pitcher (about to sign with a new team) who is aware of a nagging elbow pain.

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Definitions:

Icebreakers

Activities or games designed to warm up conversations among participants in meetings, training sessions, or team building events.

Medical Record

A medical record is a comprehensive document that contains the history, diagnosis, treatment, and progress of a patient's health condition, maintained by healthcare professionals.

Medical Terminology

The specialized language used by healthcare professionals to describe the human body, its functions, diseases, and treatments.

Conciseness

Conciseness is the quality of expressing or conveying information in a few, effective words without unnecessary detail.