Explain how the concept of externalities helps in demarcating the boundaries between the roles of government and private sector in health and health care
What will be an ideal response?
Programs that show positive externalities (immunization, sanitation, insurance for the poor) are most likely candidates for public programs, while those whose benefits are largely private (treatment of non-infectious diseases) can be handled in the private sector.
You might also like to view...
The government agency charged with environmental regulation is the
a. Justice Department b. Department of Commerce c. Federal Trade Commission d. Environmental Protection Agency e. Internal Revenue Service
When marginal cost is below average total cost,
a. total cost is falling b. average total cost is rising c. average total cost is falling d. average fixed cost is rising e. total variable cost is falling
In the history of banking, warehouse receipts refer to receipts
A) that goldsmiths once issued acknowledging that they held a customer's gold. B) for storing furniture in a warehouse. C) goldsmiths issued to each other when they borrowed gold. D) for storing food and other perishables in a warehouse.
Critics of the regulation of natural monopolies contend that:
A. regulation increases the incentive of firms to lower costs. B. regulated firms may use creative accounting to reduce costs, prices, and profits. C. when rates of return are based on the value of real capital, an uneconomic substitution of labor for capital may occur. D. the industry may "capture" or control the regulatory commission.