Which of the Following Reforms Could Help to Improve the Operation

question 638

Multiple Choice

Which of the following reforms could help to improve the operation and efficiency of health-care markets?

• A) shifting Medicare at least partially from a reimbursement service to a defined-benefit plan
• B) placing more emphasis on the demand side of the health-care market
• C) encouraging the purchase of health insurance policies with first-dollar coverage and small co-payments
• D) All of the reforms listed above could help to improve the situation.

---

Definitions:

Representativeness Heuristic

A cognitive shortcut that involves judging the probability of an event by how closely it matches one's prototype of that event.

Confirmation Bias

A propensity for selecting, interpreting, favoring, and recollecting data that affirms one's previously held beliefs or suppositions.

Fixation

In psychology, a persistent focus of attention or obsession on an object or subject.

Framing Effect

Describes how the presentation or framing of information can influence individuals' decisions and perceptions.