Questions: Consumer behavior that leads to a higher utilization of health care services when the services are covered by insurance. - Moral hazard Desensitivity Cost shifting Demand inducement

The answer is Moral hazard.

Moral hazard refers to the situation where individuals are more likely to engage in risky behavior or utilize more services because they do not bear the full cost of those services. In the context of health care, when services are covered by insurance, consumers may use more health care services than they would if they had to pay for them out of pocket. This increased utilization is due to the reduced financial burden on the consumer, leading to higher overall health care costs.

Desensitivity is not a commonly used term in the context of health care economics or insurance. It does not accurately describe the phenomenon where consumers use more health care services because they are covered by insurance.

Cost shifting occurs when health care providers compensate for losses incurred from one group of patients (e.g., those covered by government programs) by charging higher prices to another group (e.g., privately insured patients). This term does not describe the behavior of consumers increasing their utilization of health care services due to insurance coverage.

Demand inducement refers to the situation where providers influence patients to consume more services than necessary, often for financial gain. While this can lead to higher utilization of health care services, it is driven by the providers rather than the consumers themselves. Therefore, it does not accurately describe the consumer behavior in question.