Identify some reasons governments may choose to provide (or heavily subsidize) heart surgery in a hospital. (Select all that apply.) A. Preferences for public provision B. Concern that heart surgeries in hospitals create negative externalities in production C. Concern about the market power of surgeons and hospitals that can perform heart surgery D. Concern about adverse selection, in that consumers are much less knowledgeable about their heart surgery needs than heart surgeons

Identify some reasons governments may choose to provide (or heavily subsidize) heart surgery in a hospital. (Select all that apply.) A. Preferences for public provision B. Concern that heart surgeries in hospitals create negative externalities in production C. Concern about the market power of surgeons and hospitals that can perform heart surgery D. Concern about adverse selection, in that consumers are much less knowledgeable about their heart surgery needs than heart surgeons

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter12: Medicare

Section: Chapter Questions

Problem 4QAP

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Question

Identify some reasons governments may choose to provide (or heavily subsidize) heart surgery in a hospital. (Select all
that apply.)
A. Preferences for public provision
B. Concern that heart surgeries in hospitals create negative externalities in production
C. Concern about the market power of surgeons and hospitals that can perform heart surgery
D. Concern about adverse selection, in that consumers are much less knowledgeable about their heart surgery
needs than heart surgeons

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