Health care, as a good, is best described by: a. health care should be supplied by the government because it generates positive externalities. b. health care should not be supplied by the government because the private market preserves incentives to improve health care with innovation and medical technology. c. health care should not be supplied by the government because consumers pay a price well above the true cost of providing the service. d. health care should be supplied by the government because it is nonexcludable. e. both a and b.
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Positive externalities occur when the consumption of a good or service benefits a third party who is not directly involved in the transaction. In the case of healthcare, when an individual receives medical treatment or preventive care, it not only benefits them Show more…
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