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Katie has an injured leg and is having trouble walking. She is hoping to have surgery to remove scar tissue from her leg so she
Katie has an injured leg and is having trouble walking. She is hoping to have surgery to remove scar tissue from her leg so she could walk more easily. However, her insurance company will only pay for physical therapy and a cortisone shot. This is an example of __.
a. Asymmetric Information
b. The Principal-Agent Problem
c. Adverse Selection
d. Moral Hazard
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