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Why Are Uncertainties Related to Disease Incidence and Treatment Efficacy

Question 2

Multiple Choice

Why are uncertainties related to disease incidence and treatment efficacy of particular concern to health care economists?


A) Uncertainties open the door to government intervention, making it impossible to apply standard economic principles to health care.
B) Uncertainties generate asymmetrical information and data about health care that make economic analysis impossible.
C) Uncertainties lead to inefficiencies in resource allocation that must be compensated for by non-market institutions.
D) Uncertainties render the competitive forces model insufficient to regulate rising health care costs.

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