Describe the two problems arising from asymmetric information, namely:     Adverse selection; and     Moral hazard.

Please hero expert Hand written not allowed.

If the provision of medical insurance encourages people to take more health risks because they know they can receive treatment, then health insurance Multiple Choice produces an asymmetric information problem. leads to a universal access problem. causes a defensive medicine problem. creates a moral hazard problem.

Which of the following is NOT an example of moral hazard? an insured person not using preventive care, because he/she is insured against illness an uninsured patient incessantly visiting his doctor because he always thinks he is getting sick an insured person buying prescription shampoo because it covered an insured person getting their teeth whitened because it is covered

Which of the following statements is FALSE regarding the concept of "adverse selection"? Multiple Choice   Adverse selection describes a situation where an individual's demand for insurance is positively correlated with the individual's risk of loss.   Adverse selection occurs when someone increases their exposure to risk when insured. This can happen, for example, when a person takes more risks because someone else bears the cost of those risks.   The relationship between smoking status and mortality provides a good illustration for adverse selection, especially in the case in which a life insurance company did not vary its premiums according to smoking status of its customers.   To counter the effects of adverse selection, insurers may offer premiums that are proportional to a customer's risk.

The Australian health sector suffers from informational asymmetry problems pertaining to ‘moral hazard’ and ‘adverse selection’. Please provide a reason for why you either agree or disagree with the statement.

Asymmetric information and/or imperfect information can cause two forms of market failure: 1) adverse selection and 2) moral hazard. Asymmetric information is where one party in the transaction has more information than the other party in the transaction. Imperfect information is a situation in which neither party has perfect information about the good/service being exchanged in a transaction. Such goods and services are sometimes referred to as "experience goods." In the late 1990s, car leasing was very popular in the United States. A customer would lease a car from the manufacturer for a set term, usually two years, and then have the option of keeping the car. If the customer decided to keep the car, the customer would pay a price to the manufacturer, the "residual value," computed as 60% of the new car price. The manufacturer would then sell the returned cars at auction. In 1999, the manufacturer lost an average of $480 on each returned car. (The auction price was, on average, $480…

Which of the following is NOT predicted by the asymmetric information models? Pooling between different risk types cannot survive in the long run. There will be a positive correlation between riskiness and insurance coverage. Insurers will use bulk markup in their pricing strategies. Insurers will use bulk discount in their pricing strategies.

which of the strategies is effective in reducing moral hazard?  gatekeeping cost sharing prospective payment all of the above