Recall Application 3, "Increasing Health-Care Expenditures and Crowding Out," to Answer

question 101

Multiple Choice

Recall Application 3, "Increasing Health-Care Expenditures and Crowding Out," to answer the following questions:
-According to the application, as individuals increase spending on health- care:

• A) investment spending increases causing a rise in living standards in the long- run.
• B) investment spending decreases causing a decline in living standards in the long- run.
• C) government spending decreases causing a decline in living standards in the long- run.
• D) government spending increases further causing a rise in living standards in the long- run.

---

Definitions:

Privatize Gains

The concept of transferring profits or benefits from public to private ownership, often criticized for benefiting a select few at the expense of the broader public.

Government Guarantees

Assurances provided by the government to back loans, investments, or other financial transactions.

Regulatory Capture

A form of government failure that occurs when a regulatory agency tasked with acting in the public's interest instead acts in favor of the commercial or special interests of the industry or sector it is charged with regulating.

Global Competitiveness

The ability of a country or company to compete effectively and successfully in international markets.