Question

If the government were to provide health insurance coverage to all people (i.e., universal health insurance), it would address the problem of

a) adverse selection.
b) moral hazard.
c) crowd out.
d) All of the above.
e) None of the above.

Answer 1

Universal health insurance, provided by the government, addresses adverse selection, moral hazard, and crowd out.

Step-by-step explanation:

Universal health insurance, provided by the government, would address the problem of adverse selection, moral hazard, and crowd out. Adverse selection refers to the tendency for high-risk individuals to seek insurance more often than low-risk individuals, and it can lead to higher premiums and lower coverage options. Moral hazard occurs when individuals engage in riskier behavior because they have insurance, knowing that any potential costs or consequences will be covered. Crowd out refers to the possibility that government-provided health insurance may reduce the availability and quality of private insurance options.