Which of the Following Is a Correct Description of the Consequence

question 121

Multiple Choice

Which of the following is a correct description of the consequence of paying for health care in a particular way?

• A) When healthcare costs are paid for by private insurance companies, the expenses are lower because the insurance company acts like a monopolist.
• B) When healthcare costs are paid for by the government, the expenses are lower because the government acts like a monopolist.
• C) When healthcare costs are paid for by the government through taxes, the employer faces a disincentive to hire more workers.
• D) When healthcare costs are paid for by the government, the expenses are higher because the government acts like a monopsonist.
• E) When healthcare costs are paid for by private individuals, the expenses are higher because consumers are more responsive to the prices being charged.

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Definitions:

Taxable Income (TI)

This term refers to the gross income of an individual or corporation, less any allowable tax deductions or exemptions, which is subject to taxation by governmental authorities.

Adjusted Gross Income (AGI)

A measure of income calculated from your gross income and used to determine how much of your income is taxable after certain deductions are applied.

Personal and Dependency Exemptions

Tax deductions previously allowed for the taxpayer, their spouse, and eligible dependents, though suspended for federal taxes from 2018 through 2025.

Standard Deduction

A fixed dollar amount that reduces the income on which you are taxed, available to all taxpayers who do not choose to itemize their deductions.