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How are the Economic Liberty value of the Bismarck Model accomplished in the system?

a) Through government regulation of prices
b) By allowing private competition
c) Tax-funded healthcare
d) Through a command economy

User JMRC
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1 Answer

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Final answer:

The Economic Liberty of the Bismarck Model is accomplished through government regulations that promote competition alongside tax-funded healthcare, ensuring access while maintaining market efficiencies.

Step-by-step explanation:

The Economic Liberty value of the Bismarck Model is achieved primarily through government regulation, such as enforcing contracts and collecting taxes while promoting a competitive market environment. This includes activities like blocking anticompetitive mergers and imposing price caps on natural monopolies, thus encouraging a greater degree of competition. Friedrich Hayek's perspective suggests that the prosperity of an economy depends largely on the free market's ability to allocate resources efficiently through supply and demand-driven price signals, without excessive government intervention. In the context of healthcare systems, economic liberty within the Bismarck Model could manifest through tax-funded healthcare, ensuring that citizens have access to medical services, while private competition continues to play a role to stimulate efficiency and innovation.

User Anthony Chu
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