Altering the marginal cost of preventive screening by reducing the out-of-pocket cost to zero:
a. will result in everyone with this coverage taking advantage of the free care and receiving the screenings.
b. has little effect on the consumption of medical services.
c. is a wise use of resources and results in more efficient screening outcomes.
d. results in over-investment on screening technology. Using the funds elsewhere could have improved overall welfare.
d. results in over-investment on screening technology. Using the funds elsewhere could have improved overall welfare
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In a competitive market with large search costs, many firms, and asymmetric information, why is the monopoly price the only possible single-price equilibrium?
What will be an ideal response?
One way for firms to analyze their choices in an oligopoly is by using:
A. cost minimization theory. B. marginal revenue maximization strategy. C. game theory. D. None of these is an effective method for oligopolists.
In a wedge the equilibrium quantity is where ...
What will be an ideal response?
Which of the following is a definition of Tobin’s q?
a) the growth rate of the quantity of money b) a firm’s optimal capital stock divided by its actual capital stock c) the ratio of a firm’s stock market valuation to the value of its physical assets d) the ratio: gross investment/net investment e) the rate at which physical capital depreciates, plus the interest rate