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2 determinants that make it hard to identify supplier-induced demand

difference in health status and non-money costs

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Final answer:

Measuring health outcomes is complex due to the intertwined effects of personal preferences, like lifestyle choices, and healthcare services received, such as regular check-ups, which both significantly influence health and life expectancy.

Step-by-step explanation:

The question concerns two key determinants that make it challenging to identify supplier-induced demand: differences in health status and non-money costs. It's difficult to accurately pinpoint whether health outcomes like life expectancy are influenced by individual lifestyle choices or by the healthcare services received, such as annual check-ups. Lifestyle factors can include diet, exercise, engaging in risky behavior, or the use of substances like tobacco, all of which directly impact one's health and longevity. The complex interplay between these personal preferences and healthcare expenditures complicates the measurement and understanding of health outcomes.

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