Asked by zachery spence on Apr 26, 2024
Verified
Asymmetric information in the health care market has increased the supply of health care.
Asymmetric Information
A situation where one party in a transaction has more or better information than the other party, often leading to market inefficiencies or failures.
Health Care Market
The aggregate of all services, products, and institutions involved in the provision and consumption of health care services.
- Understand the concepts of asymmetric information, moral hazard, and supplier-induced demand in the health care market.
Verified Answer
SM
Stephanie ManningMay 01, 2024
Final Answer :
False
Explanation :
Asymmetric information in the health care market typically leads to inefficiencies such as market failures or the under-provision of services, rather than an increase in the supply of health care. It often results in consumers making less informed decisions, not necessarily an increase in supply.
Learning Objectives
- Understand the concepts of asymmetric information, moral hazard, and supplier-induced demand in the health care market.
Related questions
In What Ways Does the United States Have the Best ...
If the Provision of Medical Insurance Encourages People to Take ...
When the Supplier, Not the Buyer, of Health Care Services ...
A Major Implication of Asymmetric Information Is That ...
When Asymmetric Information Affects a Relationship Between Two Parties, It ...