Which of the Following Is NOT a Constraint on the Free-Market

question 14

Multiple Choice

Which of the following is NOT a constraint on the free-market approach to health insurance?

• A) The impact of cost shifting has already been achieved and the effect may be smaller than anticipated.
• B) Shifting more costs to the consumer will result in reduced utilization.
• C) Information on quality and price is so opaque that the market cannot function effectively.
• D) Some purchasers are capable of researching a medical condition and some are not.

---

Definitions:

Organic

Referring to or derived from living matter; in business, it describes growth or processes that occur in a natural, gradual, and continuous manner.

Theorists

Individuals who formulate theories or concepts in a particular field of study or aspect of human behavior.

Organic Structures

Organic structures refer to flexible, adaptive organizational structures that are characterized by low levels of formalization, decentralized decision-making, and a broad scope of control.

Mechanistic

Pertains to organizational structures that are highly formalized and centralized, with strict hierarchies and clear, rigid procedures.