Information asymmetry
A) exists because individuals know their own characteristics and health risks better than physicians can.
B) exists because physicians know their patients' characteristics and health risks better than the patient can.
C) exists when patients learn more about their illness from WebMD than from their physician.
D) exists because physicians have a large store of human capital accumulated in medical care knowledge so it costs them less on the margin to evaluate an individual's medical problem than it does the patient.
E) exists because transactions costs are high in health care.

Question

Quizplus · Accepted Answer

The Answer of Information asymmetry
A) exists because individuals know their own characteristics and health risks better than physicians can.
B) exists because physicians know their patients' characteristics and health risks better than the patient can.
C) exists when patients learn more about their illness from WebMD than from their physician.
D) exists because physicians have a large store of human capital accumulated in medical care knowledge so it costs them less on the margin to evaluate an individual's medical problem than it does the patient.
E) exists because transactions costs are high in health care.

Information Asymmetry