Why Is There an Asymmetric Information Problem in the Market

question 230

Multiple Choice

Why is there an asymmetric information problem in the market for health care?

• A) The patient, not the physician, knows most about the amount and type of health care to be provided.
• B) The government, not the physician, knows most about the amount and type of health care to be provided.
• C) Insurance companies, not the physician, know most about the type of health care to be provided.
• D) The physician, not the patient, knows most about the amount and type of health care to be provided.

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Definitions:

Lenticels

Small, corky areas on the stems and roots of plants that allow for gas exchange with the surrounding air.

Gas Exchange

The process by which organisms exchange gases with their environment, including the uptake of oxygen and the release of carbon dioxide.

Periderm

is the protective outer secondary layer of bark in woody plants and trees, comprising the phellem, phellogen, and phelloderm.

Sapwood

The outer, younger part of a tree's trunk or branch that is active in transporting water and minerals from the roots to the leaves.