Provide three rationales for government involvement in health care markets. Which is the most recent?
What will be an ideal response?
One rationale for government intervention into health care markets is in the area of contagious diseases. Since contagious diseases are a type of externality because one person does not take into account that if they get it they can easily spread it to others, it provides a rationale for government helping to control and prevent the spread of disease. A second rationale for government intervention is in the dissemination of health care information. This rationale has resulted in the regulation of physicians and pharmaceuticals. A third rationale for government involvement is that many individuals cannot afford or obtain health insurance, a growing problem as health care costs have increased.
You might also like to view...
Which of the following would be considered a leading indicator?
a. Prime interest rate b. Personal income c. Money supply d. Inventories to sales ratio e. Unemployment duration
Assume that corn and soybeans are alternatives that could be grown by most farmers. An increase in the price of corn will
a. increase the supply of corn. b. increase the supply of soybeans. c. decrease the supply of soybeans. d. decrease the supply of corn. e. have no effect on the supplies of corn and soybeans.
Which of the following provides a measure of the overall fit of a regression?
A. The F-statistic and R-square B. F-statistic C. R-square D. t-statistic
If the aggregate supply curve shifts outward, then unemployment
A. and inflation will both decrease. B. and inflation will both increase. C. will increase and inflation will decrease. D. will decrease and inflation will increase.