In the Market for Health Care

question 62

Multiple Choice

In the market for health care:

• A) there has been no effect of the presence of third-party payers.
• B) the effect of third-party payers decreases the price that consumers pay.
• C) providers are encouraged to supply a greater quantity than they would without third-party payers.
• D) B and C are true.

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Definitions:

Independent Events

Two or more events where the occurrence or outcome of one event does not affect the occurrence or outcome of the other event(s), a fundamental concept in probability.

P(A | B)

Represents the conditional probability of event A occurring given that event B has occurred.

Independent Events

Two or more events in probability where the occurrence of one does not affect the occurrence of the other.

P(A ∪ B)

The probability of the union of two events, A and B, occurring.