If an excise tax on cigarettes offsets the negative externalities associated with smoking, it means that: a. The Pareto efficient level of smoking will decline. b. The private marginal benefit of smoking will rise. c. The privately efficient level of smoking will equal the Pareto efficient level. d. The private marginal cost of smoking will decline. 9.In the Principal-Agency relationship in health care markets, the _______ acts as the agent for the ________, the principal. a. Government; insurer. b. Insurer; government. c. Health care provider; patient. d. Patient; health care provider. In the presence of external benefits for a health care service, the private market will generally provide: a. The economically efficient level of output. b. Less than the Pareto efficient level of output. c. More than the Pareto efficient level of output. d. The answer depends on the nature of the benefits
If an excise tax on cigarettes offsets the negative externalities associated with smoking, it means that:
a. The Pareto efficient level of smoking will decline.
b. The private marginal benefit of smoking will rise.
c. The privately efficient level of smoking will equal the Pareto efficient level.
d. The private marginal cost of smoking will decline.
9.In the Principal-Agency relationship in health care markets, the _______ acts as the agent for the ________, the principal.
a. Government; insurer.
b. Insurer; government.
c. Health care provider; patient.
d. Patient; health care provider.
In the presence of external benefits for a health care service, the private market will generally provide:
a. The economically efficient level of output.
b. Less than the Pareto efficient level of output.
c. More than the Pareto efficient level of output.
d. The answer depends on the nature of the benefits
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