Why Is There an Asymmetric Information Problem in the Market

question 230

Multiple Choice

Why is there an asymmetric information problem in the market for health care?

• A) The patient, not the physician, knows most about the amount and type of health care to be provided.
• B) The government, not the physician, knows most about the amount and type of health care to be provided.
• C) Insurance companies, not the physician, know most about the type of health care to be provided.
• D) The physician, not the patient, knows most about the amount and type of health care to be provided.

---

Definitions:

Clutch Discs

Clutch discs are components of a clutch assembly in vehicles, made of a friction material that engages and disengages the engine from the drivetrain.

Rollers

Cylindrical components designed to facilitate movement or transfer of materials or objects by rolling them across surfaces.

Clutch Release Forks

Mechanical levers inside a vehicle's transmission that disengage the clutch from the engine, allowing for gear changes.

Release Bearing

Usually refers to the clutch release mechanism actuated by clutch pedal movement.