Which of the following best describes the moral hazard problem associated with means-tested redistribution programs? A.People may change their behavior to be eligible for the program. B.Eligible people may not sign up for the program due to negative stigma. C.Programs are costly for society. D.Only high risk individuals sign up for programs.
Which of the following best describes the moral hazard problem associated with means-tested redistribution programs? A.People may change their behavior to be eligible for the program. B.Eligible people may not sign up for the program due to negative stigma. C.Programs are costly for society. D.Only high risk individuals sign up for programs.
Chapter7: The Market For Health Insurance
Section: Chapter Questions
Problem 5QAP
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Which of the following best describes the moral hazard problem associated with means-tested redistribution programs?
A.People may change their behavior to be eligible for the program.
B.Eligible people may not sign up for the program due to negative stigma.
C.Programs are costly for society.
D.Only high risk individuals sign up for programs.
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