Refer to the Graph Shown That Depicts a Third-Party Payer

question 44

Multiple Choice

Refer to the graph shown that depicts a third-party payer market for prescription drugs. If the co-payment is $6 per pill, total expenditures under the third-party payer system will be:

• A)greater than if the market were left alone.
• B)less than if the market were left alone.
• C)the same as if the market were left alone.
• D)undetermined.

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Definitions:

Adults

Individuals who have reached a specific age or maturity level, generally considered to be the age at which they can assume legal rights and responsibilities.

Unemployed

Individuals who are jobless, actively seeking work, and available to take up employment.

Structural Unemployment

Unemployment that results from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.

Cyclical Unemployment

A type of unemployment that results from business cycle fluctuations in the economy, typically increasing during recessions and decreasing during expansions.