If a hospital knows that an insurance company will pay for most of a patient's bill, the hospital has more of an incentive to require additional medical procedures and tests, even if the patient may not require them. This is an example of
A) moral hazard. B) adverse selection.
C) asymmetric information. D) the principle-agent problem.
D
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Marginal cost equals
a. total cost divided by quantity of output produced. b. total output divided by the change in total cost. c. the slope of the total cost curve. d. the slope of the line drawn from the origin to the total cost curve.
A profit-maximizing perfectly competitive firm must decide:
A. only on which industry to join, taking price and output as fixed. B. both what price to charge and how much to produce. C. only on how much to produce, taking price as fixed. D. only on what price to charge, taking output as fixed.
Demand-side discrimination occurs when:
A. women remain in low-paying jobs because of family responsibilities. B. employers hire a man who is more qualified than a woman. C. women postpone having children in order to succeed professionally. D. employers pay women less than men for doing the same job.
Which would not be characteristic of a capitalist economy?
A. Competition and unrestricted markets. B. Reliance on the market system. C. Government ownership of the factors of production. D. Free enterprise and choice.