The evidence is overwhelming that obesity generates demand for more joint replacements. O .A) This is an ex-post moral hazard problem, user fees will solve the problem. O. B) This is an ex-ante moral hazard problem, incentives for obesity reduction, such as subsidies for exercise, may alleviate the problem. O. C) This is cherry-picking by orthopaedic surgeons. O. D) Since this is adverse selection, the total cost of a public insurance system will not be affected. OE) This is an ex-post moral hazard problem, co-insurance will solve the problem.
The evidence is overwhelming that obesity generates demand for more joint replacements. O .A) This is an ex-post moral hazard problem, user fees will solve the problem. O. B) This is an ex-ante moral hazard problem, incentives for obesity reduction, such as subsidies for exercise, may alleviate the problem. O. C) This is cherry-picking by orthopaedic surgeons. O. D) Since this is adverse selection, the total cost of a public insurance system will not be affected. OE) This is an ex-post moral hazard problem, co-insurance will solve the problem.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The evidence is overwhelming that obesity generates demand for more joint replacements.
O .A) This is an ex-post moral hazard problem, user fees will solve the problem.
O. B) This is an ex-ante moral hazard problem, incentives for obesity reduction, such as subsidies for exercise, may alleviate the problem.
O. C) This is cherry-picking by orthopaedic surgeons.
O. D) Since this is adverse selection, the total cost of a public insurance system will not be affected.
OE) This is an ex-post moral hazard problem, co-insurance will solve the problem.
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