Which of the Following Statements Does Not Explain Why US

question 36

Multiple Choice

Which of the following statements does not explain why US health care expenditures are higher than in other countries?

• A) Government policies have shifted the health care production function downward over time.
• B) Consumer incomes have increased, which allows consumers to purchase more health care.
• C) The US health care system is relatively inefficient compared to other countries.
• D) Demand for health care in the US has increased, so health care production occurs at a higher point on the total product curve than in other countries.

---

Definitions:

Equilibrium Quantity

The quantity of goods supplied that is exactly equal to the quantity of goods demanded at the market price.

Consumer Expectations

The beliefs or anticipations consumers have about future prices, product quality, service, and other factors that influence their purchasing decisions.

Future Price

The anticipated cost or value of a good, security, or commodity at a specified future date, often used in the context of futures trading.

Downsloping Demand

This term illustrates a standard economic theory where the demand curve slopes downward, indicating that as the price decreases, the quantity demanded increases.