Explain how the healthcare market in the U.S. operates differently than the way markets for other goods and services operate, and what are the implications of this healthcare market structure for U.S. consumers?
What will be an ideal response?
1. Generally, markets for any good or service operate well because a consumer has access to information that allows them to make a purchase that meets their needs. This is not the case with healthcare.
2. As they are structured today in the U.S., healthcare markets are characterized by information asymmetry (IA).
3. IA is in the form of limited access to knowledge about the cost of procedures, quality of doctors, and potential alternatives for recommended treatments.
4. One implication is that consumers pay more for healthcare than people in any other place in the world do.
You might also like to view...
A social-conflict account of the history of gender stratification was developed by Friedrich Engels
Indicate whether the statement is true or false
If a person has an IQ of 130, approximately what percentage of people have higher IQs?
Assume M = 100 and SD = 16. A) 1% B) 3% C) 6% D) 9%
Balancing the "I" and the "me" is
A. rarely necessary. B. learned from social interaction with others. C. something that few people are able to do. D. a biological component.
Which of the following is true about the impact of offshoring on the economy of India?
A. It has limited opportunities for Indians outside the upper-middle class. B. It has limited employment opportunities for the upper middle-class. C. It has hampered production in India. D. It has artificially inflated consumption in India.