Explain the economic reasoning underlying the following statement: “People often fail to acquire information about the...

Explain the economic reasoning underlying the following statement: “People often fail to acquire information about the price they pay for medical services because of health insurance.”

Solutions

Expert Solution

Information clarity and accessibility are key to a well functioning economic market. When prices are not accessible consumers will likely over spend, since they cannot easily determine the product or service that best fits their budget. This given statement is claiming that when people have health insurance they are less likely to shop around or compare prices for their medical treatment. Health insurance does likely play a factor in why people do not compare pricing for medical care. However ,the lack of availability in treatment pricing may also play into this phenomenon . Regardless of the cause , not seeking the best quality of care to price ratio treatment will result in major overspending on both the patients and the insurance company's behalf.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Explain all the components of epidemiologic reasoning and include any underlying assumptions?

Explain why it is important for a microorganism to rapidly acquire information about its environment with...

Explain why it is important for a microorganism to rapidly acquire information about its environment with respect to time. What role does Brownian motion play in this process?

Explain the economic concepts underlying a Pigouvian tax in the energy sector. c. Explain the economic...

Explain the economic concepts underlying a Pigouvian tax in the energy sector. c. Explain the economic concepts underlying an emissions trading system in the energy sector. d. Discuss the economic logic underlying urban traffic policies to manage congestion, protect public health, and reduce emissions of air poll

) Explain any two of the following statements with economic reasoning and appropriate diagram(s) a. A...

) Explain any two of the following statements with economic reasoning and appropriate diagram(s) a. A competitive firm’s supply curve in the short-run is a segment of MC curve. b. The long-run equilibrium of a perfectly competitive firm is both productively and allocatively efficient. c. A marginal revenue curve of a monopolist lies below the demand curve .

Agree or disagree with the following statement, explain your reasoning: An important property of the Law...

Agree or disagree with the following statement, explain your reasoning: An important property of the Law of One Price is that it holds even in markets where arbitrage is not possible.

Circular Reasoning is one type of fallacy. Search for information about Circular Reasoning and locate several...

Circular Reasoning is one type of fallacy. Search for information about Circular Reasoning and locate several examples. Then complete the following: Post your definition (in your own words) of circular reasoning and include three (3) examples of circular reasoning you located during your search. In addition: Discuss times when you have encountered circular reasoning from someone and times when you used circular reasoning to defend your point-of-view and/or to convince someone of something. Provide at least three (3) examples of...

Explain the following statements with economic reasoning and appropriate diagram(s) .The long-run equilibrium of a monopolistically...

Explain the following statements with economic reasoning and appropriate diagram(s) .The long-run equilibrium of a monopolistically competitive firm is neither productively efficient norallocatively efficient and there is an excess capacity.

State whether the following statement is true or false and explain your reasoning. Protein tyrosine phosphatases...

State whether the following statement is true or false and explain your reasoning. Protein tyrosine phosphatases display exquisite specificity for their substrates, unlike most serine/threonine protein phosphatases, which have rather broad specificity.

Explain the following statement: alignment-getting the right people on the bus and the wrong people off...

Explain the following statement: alignment-getting the right people on the bus and the wrong people off the bus-is a key to effective change implementation". A maximum of 100 words avoid plagiarism

Use economic reasoning to explain the views of these two groups of economists and describe why...

Use economic reasoning to explain the views of these two groups of economists and describe why they look at land policy (institutions) differently. Use evidence to support your answer and draw a conclusion on which group of economists provide the best argument for land policies. Use examples that are current and up to date. Group 1 :Economists argue that immigration is a net contributor to the economy. They argue that they fuel economic growth, provide creative energy, and boost overall...

Subjects