Which of the following is not a rationale for government involvement in health care markets?
a. Government involvement is necessary to prevent the spread of contagious diseases, which are type of externality.
b. Government involvement is necessary to provide individuals with information on the quality of health care by regulating drugs and physicians.
c. Government involvement is necessary to ensure that physicians do not form illegal cartels to restrict entry into medicine in order to increase profits.
d. Government involvement is necessary to ensure that everyone has health insurance and thus can gain access to health care.
c
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Why will a profit-maximizing, single-price monopolist NOT produce the amount of output that maximizes its total revenue?
What will be an ideal response?
Under U.S. commercial policy, the escape clause results in
A) temporary quotas granted to firms injured by import competition. B) tariffs that offset export subsidies granted to foreign producers. C) a refusal of the U.S. to extradite anyone who escaped political oppression. D) tax advantages extended to minority-owned exporting firms. E) tariff advantages extended to certain Caribbean countries in the U.S. market.
If the exchange rate has been $2.00 per British pound but now falls to $1.60 per British pound, there will be
a. more U.S. imports from Great Britain because the price of pounds has fallen. b. more exports to Great Britain because the price of pounds has risen. c. fewer exports to Great Britain because the price of the pound has risen. d. more U.S. exports to Great Britain since the price of the dollar has fallen. e. no change in either exports or imports.
Which of the following best illustrates the unit of account function of money?
A) You list prices for clothing sold on your Web site, www.nattydresser.com, in dollars. B) You pay for your cruise tickets with dollars. C) You keep $50 in your backpack for emergencies. D) You keep your tips earned from your tour guide job in a separate jar at home.