Question

True or False

(a)Traditional rationale for government intervention is market failure for reasons including monopoly power, externatlities, and public goods.

(b) Government regulation has sometimes been used in the United States to define appropriate quality of care and impose penalities for not achieving regulatory quality levels.

(c) One of the principal categories of regulatory control is artificial limitation of quantity and capacity.

(d) Government has not historically been the direct provider of any healthcare goods or services in the United States.

(e) Regulations are used to as a non-market intervention intended to affect the quality, price, or quantity of a good or service.

Answer 1

a)True.

Monopoly power, externalities can make traditional demand-supply model to fail.

b)True

Government can set quality standards and regular checks to ensure that good quality healthcare is provided.

c)True

A limit on price and quantity can stop monopoly power.

d) False

There are direct Government hospitals for the underprivileged in the society

e) True