3. Which of the following criteria is inappropriate for judging alternative nati

Question

3. Which of the following criteria is inappropriate for judging alternative national health insurance proposals? A. Equitable redistribution—assisting those with low income to have coverage B. Financing redistribution—providing health insurance benefits to those with low income using a payroll or sales tax C. Efficiency in consumption—whether consumers consider the costs and benefits of their choices (such as health plan choices) D. Efficiency in production—whether the services (for a given level of quality) are produced at the lowest cost 3. Which of the following criteria is inappropriate for judging alternative national health insurance proposals? A. Equitable redistribution—assisting those with low income to have coverage B. Financing redistribution—providing health insurance benefits to those with low income using a payroll or sales tax C. Efficiency in consumption—whether consumers consider the costs and benefits of their choices (such as health plan choices) D. Efficiency in production—whether the services (for a given level of quality) are produced at the lowest cost 3. Which of the following criteria is inappropriate for judging alternative national health insurance proposals? A. Equitable redistribution—assisting those with low income to have coverage B. Financing redistribution—providing health insurance benefits to those with low income using a payroll or sales tax C. Efficiency in consumption—whether consumers consider the costs and benefits of their choices (such as health plan choices) D. Efficiency in production—whether the services (for a given level of quality) are produced at the lowest cost

Explanation / Answer

C. Efficiency in consumption—whether consumers consider the costs and benefits of their choices (such as health plan choices)

Reason

The government should judge insurance proposals independent of the choice by the consumers. The government should not take into account of the efficiency in consumption.

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