Why Are Uncertainties Related to Disease Incidence and Treatment Efficacy

question 5

Multiple Choice

Why are uncertainties related to disease incidence and treatment efficacy of particular concern to health care economists?

• A) Uncertainties open the door to government intervention, making it impossible to apply standard economic principles to health care.
• B) Uncertainties generate asymmetrical information and data about health care that make economic analysis impossible.
• C) Uncertainties lead to inefficiencies in resource allocation that must be compensated for by non-market institutions.
• D) Uncertainties render the competitive forces model insufficient to regulate rising health care costs.

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Definitions:

Evaluation Stage

Part of the consumer decision process where alternatives are appraised and weighed before making a final purchasing decision.

Hierarchy of Effects

A model that outlines the sequential stages a consumer goes through in the process from unawareness of a brand to purchase decision, including awareness, interest, desire, and action.

Adoption

The acceptance and integration of new ideas, technologies, or products into regular use by consumers or within an organization.

Awareness

The state or level of consciousness where one is informed or cognizant of something, such as a brand, issue, or product.