Productivity in medical care decreases

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Reference no: EM134598

Question

Answer the following Questions

One of the economic effects of increasing health care costs in the labour market is that

A) Productivity in medical care decreases

B) The demand for medical workers is decreasing

C) Government is cutting health care coverage for workers

D) Employers are using more temporary and part-time worker

Suppose that health insurance pays three-fourths of the cost of health care. Under this kind of system there will be allocative:

A) Efficiency for the reason that consumers pay a price below market equilibrium as well as receive a quantity at which the marginal cost to society equals the marginal benefit

B) Efficiency for the reason that consumers pay a price below market equilibrium as well as receive a quantity at which the marginal advantage to society exceeds the marginal cost

C) Inefficiency for the reason that consumers pay a price below market equilibrium as well as receive a quantity at which the marginal cost to society surpasses the marginal benefit

D) Inefficiency for the reason that consumers pay a price above market equilibrium as well as receive a quantity at which the marginal advantage to society exceeds the marginal cost

Reference no: EM134598

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