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Question
How can an insurance company reduce the moral hazard problem?
a. Impose a coinsurance where patients pay for a percentage of their medical care expenses, pay none of the medical expenses associated with preventive care, and raise deductibles.
b. Impose a coinsurance where patients pay for a percentage of their medical care expenses, pay all of the medical expenses associated with preventive care, and raise deductibles.
c. Eliminate patients responsibility to pay for a percentage of their medical care expenses, pay all of the medical expenses associated with preventive care, and raise deductibles.
d. Impose a coinsurance where patients pay for a percentage of their medical care expenses, pay all of the medical expenses associated with preventive care, and lower deductibles.
e. There is no way to reduce the moral hazard problem.
Answer
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Related questions
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b. relatively unresponsive to a change in price.
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What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
b. A surplus will continue to exist and will grow smaller over time.
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Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
a. Prices in the legal market in the community with a binding price ceiling will rise.
b. Prices in the legal market in the community with a binding price ceiling will fall.
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a. Demand for jelly will increase along with the price.
b. Demand for jelly will decrease along with the price.
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