Which of the Following Factors Has Contributed to the Rise

question 33

Multiple Choice

Which of the following factors has contributed to the rise in the cost of health care in the United States?

• A)The system is highly efficient.
• B)Health care is profit-driven.
• C)The young population is consuming less health care that previously thought.
• D)Pharmaceutical companies are developing generic,low-cost prescription drugs.

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Definitions:

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than another entity.

Geegaws

Ornamental objects of no substantial value, often considered trinkets or gadgets.

Doodads

Informal term for small objects or gadgets, often of little value and used for decoration or trivial purposes.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and products that are close substitutes, leading to price determination by supply and demand.