Explain the mystery in the link blow httpsdocsgooglecomforms

Explain the mystery in the link blow:

https://docs.google.com/forms/d/1Ph9rU4xXy5nZg1HNFWwQZKciJ-xieb8Cic1tUZ8tAD8/viewform?c=0&w=1

Solution

Q)Why, when you don\'t charge people for things (including health care) do they consume \"too much\" of it?

Consumers offered free health care may use it even if they see little value of them, just because it is free.

Q) Which reason from the Guideposts to Economic Thinking below helps to explain this mystery.

Choices have COSTS.

Q) Explain the best clue and guidepost combination and give an example.

If the consumers offered free healthcare, they will use it more though it is not required every time. If it has associated with cost they will refrain to utilize unnecessarily. For example, let’s assume a company will sell a car insurance product of reasonable price and it gives you option of free service and checkup, free engine oil and free body paint throughout the year. People will utilize this offer regularly though it will not be necessary to check up or service always for their cars. Just because it is free, people will utilize it to the maximum even if it doesn’t add any value to their cars. The similar situation applies to health care as well.