Explain how an “individual mandate," where every resident of a country is required by law to purchase health insurance might affect the cost of healthcare. Which specific source of market failure is addressed by such a mandate? Explain your answer.

Explain how an “individual mandate," where every resident of a country is required by law to purchase health insurance might affect the cost of healthcare. Which specific source of market failure is addressed by such a mandate? Explain your answer.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter5: Supply, Demand, And Price: Applications

Section: Chapter Questions

Problem 2QP

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Question

Economics
Explain how an “individual mandate," where every
resident of a country is required by law to
purchase health insurance might affect the cost of
healthcare. Which specific source of market failure
is addressed by such a mandate? Explain your
answer.

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