A Major Implication of Asymmetric Information Is That

question 50

Multiple Choice

A major implication of asymmetric information is that

• A) health care suppliers may reduce the supply of health care.
• B) health care suppliers may increase the demand for health care.
• C) collusion between health care suppliers and purchasers may accelerate the rise in costs.
• D) resources may be underallocated to the health care industry.

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Definitions:

Dissociative Fugue

A dissociative disorder in which one has a complete loss of memory of one’s entire identity, travels away from home, and may assume a new identity.

Conversion Disorder

A psychological condition in which a person shows neurological symptoms, such as numbness, blindness, paralysis, or fits, without a neurological explanation.

Catatonic Schizophrenia

A subtype of schizophrenia characterized by significant motor disturbances, from rigid immobility to excessive motor activity.

Manic Episode

A period of excessive euphoria, inflated self-esteem, wild optimism, and hyperactivity, often accompanied by delusions of grandeur and by hostility if activity is blocked.