EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 18, Problem 2SP
To determine
Moral hazard and the increased safety features in the modern automobiles.
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How can deductibles, copayments, and coinsurance reduce moral hazard?
Someone indicated that employee’s absence from work despite meeting the eight hours per day requirement affect productivity and increase cost of business. If an employee makes up the hours by coming early and leaving late, how can you call it an example of moral hazard when the manager can easily correct this behavior? Please explain to the class.
Which of the following is NOT a healthcare good or service?
A)Vaccine
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Chapter 18 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
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- The lower the deductible on an insurance policy, the higher the premiums. True or Falsearrow_forwardPrice discrimination requires the ability to distinguish customers who are the most price sensitive and the ability to prevent arbitrage (resale of your products by customers who buy at low prices). What attributes of healthcare products make these tasks easy to do?arrow_forwardHow is the moral hazard problem relevant to the health care market?arrow_forward
- Consider a consumer with a medical bill of $1,000. He has a $250 deductible and a 10 percent coinsurance rate on all expenses over $250. His "out-of-pocket" liability for this bill is $ Please type in a number (without any extra space, symbol, word, etc.)arrow_forwardShould insurers be allowed to refuse health insurance policies to individuals who are genetically predisposed to certain diseases? To those whose lifestyles place them in high-risk categories for certain diseases? Support your answers.arrow_forwardWhy is healthcare fraud is a big problem in the U.S. economy?arrow_forward
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