Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 22 - Health Care - Review Questions - Page 511: 4

Answer

c. The moral hazard problem.

Work Step by Step

When people are covered under health insurance, they tend to be more negligent about their health as the cost of any damage to their health is not upon them to bear. In this case, Tina is in a similar position neglecting the potential risk of participating in dangerous sports and exposing herself more towards a health risk.
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