Assignment:
Watch the narrated powerpoint slides
- Moral Hazard
- Dealing with Moral Hazard: Managed Care
Read the following article:
- The Myth of Moral Hazard by Malcolm Gladwell
and then take the 2 essay questions
This is a link to the article "The Myth of Moral Hazard" by Malcolm Gladwell. It will be important to read this article before you take the quiz for this unit.
https://www.newyorker.com/magazine/2005/08/29/the-moral-hazard-myth
QUESTION 1
Pretend you are working for a policy maker and your task is to explain the concept of moral hazard. Use the space below to formulate your explanation.
QUESTION 2
Economist disagree about the likely extent of moral hazard in the health care system. What are 2 arguments/evidence to suggest that moral hazard does exist? What are 2 arguments/evidence to suggest that moral hazard does not exist?