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Question
After attending medical school, Georgiana has decided to encourage all of her family members to see her for their healthcare needs because she knows their health problems and has an incentive to keep them alive and as healthy as possible. What type of asymmetric information problem is Georgiana trying to correct by having her family members see her for care?
a. principal-agent problem
b. diminishing returns
c. adverse selection
d. moral hazard
e. an adverse selection problem that became a principal-agent problem
Answer
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