Question: QUESTION 5 Moral Hazard and Adverse Selection, Part a . A study observes that individuals in health insurance plans with more generous coverage ( e

QUESTION 5
Moral Hazard and Adverse Selection, Part a. A study observes that individuals in health insurance plans with more generous coverage (e.g., lower coinsurance rates, lower copayments) use more medical care than individuals in health insurance plans with less generous coverage (e.g., higher coinsurance rates, higher copayments) on average. You may assume that all individuals are equally risk averse and all health insurance plans are actuarially fair. Is the study's observation consistent with moral hazard? Select the better answer.
Yes
No
QUESTION 5 Moral Hazard and Adverse Selection,

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