Mha 707 exam c ch 678 - Study guides, Class notes & Summaries

Moral Hazard - When the act of insuring an event increases the likelihood that the event will happen behaving different when you know someone is taking the risk (induced demand) Adverse Selection - the situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction the sicker people likely want more insurance, compared to those who are healthy Pooling of Risk - Allows individuals to share risk, i.e., insurance companies National Health...