Efficient market

o What factors must exist for there to be an efficient market?
o What does it mean when there is market failure? Give an example of market failure in the healthcare market?
o What is the economic impact of government price controls? Provide an example of price controls in the healthcare area.
o What economic rationale supports the government provision of health insurance to the poor.
o What are the characteristics of a “public good”? Why is it difficult for a private company to provide a public good?
o Do you think licensing of physicians increases quality of health care?
o What is the impact of physician licensing on the quantity of physicians, does licensing increase or decrease the quantity?
o What market failure does the regulation of nursing home quality issues address?