Some economists have argued that certain characteristics of the delivery of health care justify government intervention. One of these characteristics is
A) health care is a public good.
B) health care is nonrivalrous and nonexcludable.
C) health care generates negative externalities.
D) health care generates positive externalities.
Answer: D
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What is the essential characteristic of money?
A) It must be backed by some other tradable commodity. B) It must be backed by gold or silver. C) It must be accepted and used by people as a general medium of exchange. D) It must be declared by government authority.
If a production possibilities boundary is a curve concave to the origin and not a straight line, then:
A. there are unemployed resources. B. resources are not equally suited to producing alternative products. C. resources are perfectly interchangeable to alternative uses. D. resources are equally suited to producing alternative products.
People who are the most at risk for health problems are the most likely to sign up for health insurance. Health insurance premiums rise to cover the increased costs of these people, whereupon the less at risk drop their health insurance coverage, worsening the problem. This problem is called the
A. health care poverty problem. B. moral hazard problem. C. adverse selection problem. D. health care uncertainty problem.
Public goods are
A) under provided by the private market because the marginal cost of production is too high. B) under provided by the private market because the marginal benefits of consumption are too low. C) under provided by the private market because people's willingness to pay for the good is less than the marginal benefit of the good. D) over provided by the private market because the marginal benefits of consumption are too high.