What name is given to an organization that receives a fixed amount per each person enrolled in a health care plan regardless of how many services are provided quizlet?

What name is given to an organization that receives a fixed amount per each person enrolled in a health care plan regardless of how many services are provided quizlet?

Health maintenance organizations provide health care and is paid a fixed amount per person enrolled in the plan, regardless of how many services are provided. Imagine a consumer shopping for a used car is worried about getting stuck with a lemon, finds two that appear very similar.

Have incentives to create mechanisms that will allow them to make mutually beneficial transactions even in the face of?

Buyers and sellers have incentives to create mechanisms that will allow them to make mutually beneficial transactions even in the face of imperfect information. Only sellers have incentives to create mechanisms that will allow them to make mutually beneficial transactions even in the face of imperfect information.

Is a promise to fix or replace the good at least for a certain period of time?

Sellers may offer a warranty, which is a promise to fix or replace the good, at least for a certain period of time. The seller may also offer a buyer a chance to buy a service contract, where the buyer pays an extra amount and the seller agrees to fix anything that goes wrong for a set time period.

Which of the following is an effort to influence a person to buy an insurance product from you?

Soliciting is any effort to influence a person to purchase an insurance product from you.

How does asymmetric information affect supply and demand?

In any transaction, a state of asymmetric information exists if one party has information that the other lacks. This is said to cause market failure. That is, the correct price cannot be set according to the law of supply and demand.

What are the negative effects of asymmetric information?

Asymmetric information can lead to adverse selection, incomplete markets and is a type of market failure. When looking at a car, a buyer can only see the externals and cannot know how reliable the engine is.

Is moral hazard a market failure?

Moral hazard is an example of asymmetric information leading to a market failure.

Which of the following is an example of moral hazard in the labor market?

Some Work Gets Paid A Premium In The Labor Market Because It Is Undesirable Work All Are Examples Of Moral Hazard In The Labor Market. Once Workers Are Hired, It Is Difficult For Managers To Get Them To Work Hard.

Which of the following is a problem of adverse selection?

Which of the following is a problem of adverse selection? Individuals use more medical services as a result of their purchase of a health insurance plan. A person takes up the hobby of bungee jumping after purchasing health insurance. The lender has a problem of distinguishing good risk from bad risk borrowers.