Which of the Following Is Not a Problem in Health-Care

question 101

Multiple Choice

Which of the following is not a problem in health-care markets?

• A) hospitals are not trying to maximize their profit.
• B) asymmetric information.
• C) public-health externalities.
• D) a missing insurance market.
• E) None of the above answers are correct; that is, all the answers are problems in health-care markets.

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Definitions:

Good

An item or service that satisfies human wants and provides utility, which can be transferred or sold.

Sellers

Individuals or entities that offer goods or services in exchange for monetary or other forms of compensation.

Producer Surplus

Producer surplus is an economic measure of the difference between the amount a producer is paid for a good compared to the minimum amount they would accept to produce that good.

Market Price

is the current price at which an asset or service can be bought or sold in the open market.