Question

Individuals who pay less of their own health care costs may have an incentive to use health care resources more frequently and to engage in riskier behaviors.
The problem is known as:
A. asymmetric information.
B. adverse selection.
C. moral hazard.
D. market power.

Answer 1

Answer:

C. moral hazard.

Explanation:

Moral hazard -

It is the condition , where the person take more risk , as he or she is aware that someone else need to bear the risk , is known as moral hazard .

In this case , one of the party can change the damage of  other after any type of monetary transaction has occurred .

Hence , from the question ,

The statement given in the question , is about Moral hazard .