Question

All MegaCorp employees who stay on the job for more than three years are rewarded with a 10 percent pay increase and coverage under a private health insurance plan that MegaCorp pays for. Tina just passed three years as a MegaCorp employee and reacts to having health insurance by taking up several dangerous sports because now she knows that the insurance plan will pay for any injuries that she may sustain. This change in Tina’s behavior is known as:A. Defencive medicineB. Assymetric informationC. The moral hazard problemD. The personal mandate

Answer 1

c. the moral hazard problem

Step-by-step explanation:

The moral hazard problem -

It is the condition , in which a person is involved in a risky act , for which he or she is aware that some else need to pay for the condition , is known as the moral hazard problems.

The basic example of a moral hazard problem is the insurance , like health insurance,

Where the people are secured with payment for any heavy health related bill .

Hence, from the question,

Tina's behaviour is depicting the moral hazard problem , as she is very well aware about the payment of her hopital bills .