Moral hazard can be a significant problem in countries with national health insurance, but national insurance...

Moral hazard can be a significant problem in countries with national health insurance, but national insurance can be popular partly because it can solve the problem of adverse selection.

True

False

Expert Solution

Correct Answer:

False

It is the incidence of adverse selection that leads to the creation of moral hazard. So, if moral hazard is the problem at higher scale, then adverse selection problem will also be significant.

Rahul Sunny answered 2 years ago

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