A nurse economist is explaining to a class that the health care market exists in a state of "market failure" because:

Question

Quizplus · Accepted Answer

The economics of health care are unlike any other business sector.Demand for health care is not directly related to the quality and availability of services.Incomplete information by "consumers" and uncertainty related to the need for future health care result in a situation in which society cannot agree on an acceptable level of "output." This is known as market failure.It can be argued that health care today is not meeting demands, but this is unrelated to the concept of market failure.It may be true that more health care practices are failing economically in this market, but it is not related to the concept of market failure.Investment in the stock market is not related to market failure.

A Nurse Economist Is Explaining to a Class That the Health