Asked by Mugan Tayalan on Jun 28, 2024
Verified
When the supplier, not the buyer, of health care services makes most of the decisions about the amount and type of health care to be provided, there is
A) a moral hazard in the health care market.
B) asymmetric information in the health care market.
C) a lack of medical ethics in the health care market.
D) a need for Medicare in the health care market.
Asymmetric Information
A situation where one party in a transaction has more or better information than the other, leading to an imbalance of power.
Health Care Services
A broad range of services provided to individuals or communities to promote, maintain, monitor, or restore health.
- Gain a foundational understanding of health insurance, focusing on key problems like moral hazard and information asymmetry.
- Apprehend the components that drive demand and supply dynamics in the health services market.
Verified Answer
ZK
Zybrea KnightJul 02, 2024
Final Answer :
B
Explanation :
This situation describes asymmetric information in the health care market, where the supplier (e.g., doctors, hospitals) has more information about the health services needed than the buyer (patient), leading to potential imbalances in decision-making.
Learning Objectives
- Gain a foundational understanding of health insurance, focusing on key problems like moral hazard and information asymmetry.
- Apprehend the components that drive demand and supply dynamics in the health services market.
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