Chapter 15 Flashcards
Which type of market structure has no collusion, many buyers and sellers, a standardization of products, as well as a freedom of entry and exit from the market?
A. Monopoly
B. Oligopoly
C. Monopolistic competition
D. Perfect competition
D. Perfect competition
Which characteristic is NOT true of the economic performance of the healthcare system?
A. The demand is relatively elastic
B. The marginal value does not always need to exceed the marginal cost
C. Extremely large barriers required to get new products on the market
D. Healthcare products have a universal demand
A. The demand is relatively elastic
Which of the following would NOT improve the economic performance of the healthcare system?
A. Creating incentives for efficient and effective care through managed care organizations
B. Using market forces such as educating consumers and providers on the actual costs of healthcare
C. Decreasing the number of buyers (providers) and sellers (patients)
D. Balancing cost of care and value received to reflect a more traditional supply and demand curve
C. Decreasing the number of buyers (providers) and sellers (patients)
Why does the inelasticity of demand for healthcare cause costs to increase faster than in other industries?
A. As prices increase, consumers often “shop around” for the best price
B. Healthcare services are not as price sensitive as other services
C. Patterns of illness are predictable in large populations
D. Healthcare services are standardized, and there are many substitutes available
B. Healthcare services are not as price sensitive as other services
