If We Think of Good Governance as a Public Good

question 42

Multiple Choice

If we think of good governance as a public good created by well-informed voters, we can predict that it will be:

• A)oversupplied.
• B)undersupplied.
• C)in market equilibrium, if left unchecked.
• D)in market equilibrium, despite market interference.

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Definitions:

Co-pays

Fixed amounts paid by patients for healthcare services at the time of service, with the balance covered by insurance.

Deductibles

Deductibles are the amount paid out of pocket by the policyholder before an insurance provider pays any expenses.

Moral Hazard

The risk that one party to a contract can change their behavior to the detriment of the other party once the contract has been executed.

Asymmetric Information

A situation where one party in a transaction has more or superior information compared to another.