Moral hazard will tend to be a more significant problem when

Select one:

a.The out-of-pocket price paid by consumers is high

b.The out-of-pocket price paid by consumers is low

c.Consumers have insurance policies which have extremely high deductibles

d.Most consumers have no insurance

e.Most consumers have policies which require them to make high co-payments when purchasing medical services

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One payment method provides a fixed, per capita payment to providers for a specified medical benefits package. Providers are required to treat a well-defined population for a fixed sum of money, paid in advance, without regard to the number or nature of the services provided to each person. This method is called

Select one:

a.Retrospective payment

b.Mandatory provider participation

c.An entitlement program

d.Capitation

e.Self-insurance

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The demand for a highly addictive substance, such as cocaine, is likely to be

Select one:

a.an inferior good

b.impossible to determine

c.upward-sloping

d.highly elastic

e.highly inelastic