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.
Question 2
One reason the supply and demand model might not be appropriate to the health-care industry?
A) Consumers do not have full information.
B) Providers do not know the demand for health-care services.
C) Consumers do not know how to value their own health.
D) The costs of finding a doctor are too low.
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A medical assistant listening to the patient and physician discuss the patient's care.
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