Use the Following to Answer Question(s): Third-Party Payers

question 61

Multiple Choice

Use the following to answer question(s) : Third-Party Payers

-(Exhibit: Third-party payers) At a price of $60 with a third party payer, the total cost of health-care services compared to the price that would prevail if there were no third-party payers has:

• A) decreased from $180 million to $80 million.
• B) increased from $80 million to $180 million.
• C) decreased from $180 million to $80 million, and consumers pay $60 million
• D) increased to $180 million, and insurance pays $60 million.

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing to undertake one action over another.

Computer

An electronic device capable of performing calculations and tasks according to a set of instructions called programs.

Roses

Flowers known for their beauty and fragrance, extensively used in gardens and as symbols of love and remembrance.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors with the same amount of resources.