Briefly describe the most important differences between the market for health care and the market for other goods and services
What will be an ideal response?
Doctors and hospitals that supply most health care are primarily private firms, as is true in the market for other goods and services, but with health care, the government also provides some services directly through the Veterans Health Administration, and indirectly through Medicare and Medicaid. In the market for other goods and services, consumers pay the full market price, but in the market for health care, a typical consumer does not pay the full price because of health insurance.
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If a 20 percent increase in the price of a used car results in a 10 percent decrease in the quantity of used cars demanded, then the price elasticity of demand equals
A) 0.5. B) 1.0. C) 2.0. D) 10.0.
According to the efficient markets hypothesis, which of the following would decrease the price of stock in Veblen's Leisure Company?
a. Veblen announces, just as everyone had expected, that it has fired its CEO who has been accused of ethics violations. b. Veblen announces, as the market had expected, that its profits were low. c. Fundamental analysis published by KM Financial shows that Veblen's stock is undervalued. d. A highly anticipated book is published by a Veblen insider which details Veblen's innovative technology in plain English, information that was previously unavailable to the public and which will now be used by Veblen's competitors.